Americans are showing an increased willingness to spend more on holiday shopping this year, according to a recent survey by credit reporting giant TransUnion. The survey found that over one in five Americans are planning to spend over $1,000 on holiday gifts, compared to 14% last year. This shift towards larger, more expensive purchases comes as retail sales continue to increase and despite concerns about depleted savings. The report also highlighted that higher-income millennial households with children, as well as middle- and lower-income Americans experiencing strong wage growth, were driving this trend. Furthermore, some respondents expressed a preference for practical gifts and experiences over material goods this year. Overall, Americans are feeling bullish about holiday spending and are expected to continue their positive shopping behaviors.
Americans are planning to spend more on holiday shopping this year
The holiday season is fast approaching, and Americans are gearing up to spend big on their holiday shopping. According to recent statistics, there has been an increase in spending for holiday shopping compared to previous years. This article will delve into the reasons behind this increase, the impact of decreased savings on holiday shopping, and how this year’s spending habits compare to those of previous years.
Statistics show increased spending for holiday shopping
Recent surveys and studies have indicated that Americans are planning to spend a significant amount of money on their holiday shopping this year. A Holiday Shopping Survey conducted by credit reporting giant TransUnion found that over 21% of respondents are planning to spend over $1,000 on holiday gifts. This is a significant increase from the 14% who spent that amount last year.
The survey also revealed that 29% of Americans plan to spend more this year compared to last year, while only 16% plan to reduce their spending. This increase in holiday spending can be attributed to factors such as higher-income millennial households with children and middle- and lower-income Americans experiencing strong wage growth.
Impact of decreased savings on holiday shopping
Despite concerns about decreasing household savings, Americans are still willing to spend more on their holiday shopping this year. The TransUnion survey found that even as their savings cushions decline, Americans are determined to shell out more money on holiday gifts compared to last year. This shows the resilience and optimism of American consumers when it comes to holiday spending.
Comparison with last year’s spending habits
When comparing this year’s holiday shopping habits with those of last year, it is evident that there has been a shift towards larger and more expensive purchases. As mentioned earlier, the percentage of Americans planning to spend over $1,000 on holiday gifts has increased from 14% to 21%. On the other hand, the percentage of Americans planning to spend under $100 has decreased from 17% to 4%.
This shift can be attributed to various factors, including increased income levels, strong wage growth, and a desire to make more extravagant purchases for loved ones during the holiday season.
Shift towards larger and more expensive purchases
The increase in holiday spending this year is not only seen in the overall amount spent but also in the types of purchases being made. Americans are gravitating towards larger and more expensive items as they shop for holiday gifts. This trend can be attributed to factors such as increased disposable income and a desire to splurge on loved ones during the holiday season.
Factors driving increased holiday spending
Several factors are driving the increased holiday spending among Americans this year. One significant factor is the strong wage growth experienced by middle- and lower-income Americans. As wages increase, individuals have more disposable income to spend on holiday gifts.
Additionally, higher-income millennial households with children are also contributing to the increase in holiday spending. These households have the financial means to make more significant purchases and are willing to invest in high-quality gifts for their loved ones.
Preference for practical gifts and experiences
While Americans are planning to spend more on holiday gifts this year, the types of gifts being chosen have also undergone a shift. According to the TransUnion survey, many households reported planning to give more practical gifts this year, such as gas cards. Additionally, a significant number of respondents stated that they would replace tangible gifts like clothing or electronics with experiences such as travel and events.
This shift towards practical gifts and experiences can be attributed to a desire for more meaningful and long-lasting presents. Instead of giving material items, Americans are increasingly valuing experiences that create lasting memories.
Economical shopping habits
Despite the increase in holiday spending, Americans are still adopting economical shopping habits. According to the TransUnion survey, around a fifth of respondents reported buying cheaper versions of gifts, while 28% stated that they are buying fewer gifts this year. This demonstrates that while Americans are willing to spend more, they are still conscious of their budgets and are making efforts to maximize their purchases.
Early start to holiday shopping
Another noticeable trend this year is the early start to holiday shopping. The TransUnion survey found that 22% of respondents had already started their holiday shopping as of August. This early start can be attributed to several factors, including a desire to spread out expenses, availability of deals and discounts, and the convenience of shopping online.
By starting their holiday shopping early, Americans can take advantage of sales and discounts, ensuring that they can find the perfect gifts for their loved ones without breaking the bank.
Search for deals and discounts
Americans are known for their love of a good deal, and this holiday season is no exception. The survey conducted by TransUnion revealed that a significant number of respondents are actively searching for deals and discounts. This highlights the importance of cost savings and value for money when it comes to holiday shopping.
By seeking out deals and discounts, Americans can make their holiday budgets stretch further, allowing them to buy more gifts or invest in higher-quality items.
Continued growth in retail sales
Despite economic uncertainties and concerns about decreased savings, retail sales continue to grow each month. According to the survey conducted by TransUnion, retail sales grew by 0.7% month over month in September and 0.6% in August. This growth is a positive sign for the retail industry and indicates that Americans are still willing to spend on their holiday shopping.
Additionally, sales at miscellaneous store retailers grew by 3% since the previous month, while online sales rose by 1.1%. These numbers demonstrate the resilience of the retail sector and the willingness of Americans to embrace different shopping channels.
In conclusion, Americans are planning to spend more on their holiday shopping this year, despite concerns about decreased savings. The increase in spending can be attributed to factors such as higher-income millennial households, strong wage growth, and a desire for larger and more expensive purchases. Americans are also showing a preference for practical gifts and experiences and are adopting economical shopping habits. By starting their holiday shopping early and seeking out deals and discounts, Americans can make the most of their holiday budgets. The continued growth in retail sales highlights the optimism and resilience of American consumers when it comes to holiday spending.