NEW NRF SURVEY PROJECTS INCREASE IN HOLIDAY SPENDING AND ONLINE SHOPPING
According to the National Retail Federation’s Holiday Consumer Spending Survey, conducted by Prosper Insights and Analytics, consumers celebrating Christmas, Hanukkah and/or Kwanzaa will spend an average of $805.65 this holiday season, the highest amount in the survey’s 14-year history and in line with last year’s $802.45.
“Despite the challenges that still exist in our economy, it looks as if consumers are eager to celebrate the holidays with friends and family this year,” said NRF president and CEO Matthew Shay in a statement. “We expect consumers will tackle their holiday shopping lists with a healthy dose of optimism, tempered by a hint of caution as they look for ways to find the perfect, practical gift.”
More of shoppers’ time this holiday season will be spent browsing and buying online compared to last year. The survey found nearly half (46.1%) of holiday shopping will be conducted online, up from 44.4 percent last year and the highest recorded since NRF first asked in 2006.
Of those consumers who plan to shop online, 46.5 percent say they will take advantage of retailers’ buy-online, pick-up-in-store or ship-to-store options. Free shipping seems to be the most anticipated promotion however: 93.1 percent of online shoppers say they will use a free shipping offer when shopping for holiday merchandise.
Millennial online shoppers are most likely to take advantage of the instant gratification option when it comes to shipping and fulfillment: according to the survey 16.7 percent of 18-24 year olds and 15.9 percent of 25-34 year olds will use a same-day delivery option when buying gifts, décor and other holiday items, compared to just 7.8 percent of the rest of the population.
“The surprise factor isn’t the numbers surrounding millennials and their planned use of retailers’ innovative digital offerings; it’s the power that this cohort of adults has when it comes to influencing retailers to speak their language,” said Prosper’s principal analyst Pam Goodfellow. “Young adults and millennials are incredibly savvy when it comes to finding the right gift at the right price at the right place.”