Dive Brief:
- Just 22% of U.S. consumers plan to spend more this holiday season, and 27% expect to spend less, according to a national survey from Experian in conjunction with ad platform GroundTruth.
- Nearly 40% of those surveyed will split their retail shopping experience between online and in-store, and almost half (45%) say they will start shopping for the holidays before November, while most will finish in December.
- While other research has indicated that AI is having an impact on the way some consumers shop this holiday season, only 12% of shoppers expect to use it for their holiday purchases, per the Experian report.
Dive Insight:
Although online shopping continues to grow in importance, 80% of consumers still prefer the in-store experience, according to Experian.
As the survey states, “this makes physical retail more than a transaction point; it’s a validation touchpoint.” A significant portion of those surveyed say they will begin their shopping journey online and then visit brick-and-mortar stores to see products before making a purchase.
Experian’s prediction for a pullback in spending this holiday season for some consumers comes as others have predicted muted holiday sales.
Spending by Gen Z consumers is projected to decrease by nearly a quarter, which could send total holiday sales down by 5%, according to a PwC report. And a holiday report from Bain & Company predicts a 4% increase in sales for the November and December period, which is below the 10-year average. Deloitte predicted that holiday sales in the U.S. would grow between 2.9% and 3.4% compared to last year.
