Amid recession worries, merchants may be preparing for the worst, but Kounts survey reveals a more optimistic holiday shopper. One in five holiday shoppers will spend less this season because of a changed . As a result, the total online holiday sales amounted to approximately 186 billion dollars! And it can stop high-velocity activity from things like e-gift card fraud. So, to shine more light on holiday shopping plans and the average gift-giving budgets, we prepared the essential holiday spending statistics for 2022. And over half of respondents say they will spend between $101 to $500 on gift cards. So its unsurprising that customers say the top ways merchants can boost their confidence this holiday season is with guaranteed delivery, free shipping and returns, and discount codes. In fact, that first week of the holiday season saw consumer travel spending nearly 5% above 2019. Despite citing fears of inflation and the rising costs of transportation and utilities as deterrents to holiday / MoneyWatch. More than 48% of survey respondents say they will conduct their holiday shopping via mobile apps this year. Mastercards annual holiday forecast predicts a 7.1% growth in total US retail sales. (NRF) 80% of Americans spend under $200 on New Year's Eve. For instance, most shoppers plan to spend an average of $100-150 on Thanksgiving and over $200 on Christmas gifts. (Deloitte, 2020) . Credit cards and cash round out the list. Consumers say that delayed delivery, expensive shipping, and paying for returns were their other top concerns. Further, the use of smartphones for online holiday shopping is steadily rising, from 52% in 2019 to 56% in. Adobe, for example, expects U.S. online holiday sales to hit $209.7 billion during the holiday 2022 season . "A lot of consumers like to try on the clothing and are definitely a lot more comfortable going in stores versus how they felt around this time a couple of years ago," Pandya said. In fact, expensive shipping and returns were the two biggest reasons customers would abandon their holiday carts. Consumers say that delayed delivery, expensive shipping, and paying for returns were their other top concerns. Various factors affect consumer spending and holiday habits, with higher-income groups spending more on winter holidays than low-income populations. The solutions thwart any high-risk activity while letting good customers seamlessly through. Thanks to 9% inflation, you can add about $20 to that tab this year. Gift cards are good for business because consumers typically spend more than a gift cards balance. Despite an early start and months of preparation, many stores across the United States experienced shipping delays and supply chain issues. "Retailers in some sectors are trying to offload excess supply. More early pre-Thanksgiving shoppers are starting even earlier 39% started or plan to have started before October. Now, theyre turning towards mobile devices. Consumers are ready to get out and celebrate over the 2022 holiday season, but last years optimism has taken a beating as financial concerns have them feeling a bit more grinchy this year, saidMarshal Cohen, chief retail industry advisor for NPD. . (eMarketer, 2020) . Despite his BA in English, Darkos interests slowly strayed away from analyzing Shakespeare and re-reading the classics. So, it is no surprise that more than two-thirds of consumers expect higher prices for winter holidays. Meanwhile, 33% of customers will peel away if they receive the wrong or damaged item. Last year, it was the supply chain. Since we live in a post-pandemic world, social gatherings are back in full force. Key factors behind holiday 2021's retail growth The 2021 holiday season saw the fastest retail YoY growth in over 20 years, largely thanks to accelerating wage growth, the lasting effects of government stimulus, and an elevated . Even though the term Cyber Monday premiered in the 2005 holiday season, the Monday after Thanksgiving overcame Christmas and Halloween day to become the highest spending winter holiday in the United States. For instance, the prices for online apparel grew by 17.3% compared with pandemic levels. When asked about their shopping intentions and plans, most consumers said they expect to spend an average of $25-50 on gifts. This year, consumers told us they will do 57% of their shopping online; 43% in stores. For many American families, holiday shopping is an opportunity to spend quality time together and share joy. On the other hand, only about 10% of US shoppers typically start buying Christmas presents in December. So even though consumers may be more careful about their spending this year, they are still spending and a lot more than merchants might expect. By doing so, merchants can capture and maximize holiday revenue from this years cautious shoppers. All Rights Reserved. "I do expect airports and hotels to be quite busy this holiday season, so what's going to happen is upper-income households will drive travel demand and lower-income households will choose to stay home," he added. Nearly 2 Million More People Than Last Year Are Expected to Shop From Thanksgiving Day Through Cyber Monday. To help brands, retailers and agencies inform their strategies for key holidays, we're surveying thousands of consumers on a rolling basis to understand how they expect to celebrate- and shop for- upcoming 2022 holidays. The survey, which polled 1,042 individuals across the United States, reveals key insights for . Oct. 18, 2022. Subscribe and get key market trends and insights relevant to your industry. The resulting insight can help meet the expectations of those shoppers who are ready to spread holiday cheer. Knowing the 5 essential e-gift card fraud questions can help merchants balance caution with an effective e-gift card strategy. Develop a robust strategy that treats ESG not just as a challenge to be met but rather as an opportunity to showcase your brand. MoneyTransfers 2022. So, let us dive in to see how much money US shoppers will spend during the upcoming merry season. Cyber Monday stole the show, hitting nearly 10.8 billion dollars in digital sales. According to a September 2022 poll conducted by NRF and Prosper Insights & Analytics, 45% of holiday shoppers say they are likely to browse and buy in stores on Black Friday this year. In recent years, people have been shopping more on Cyber Monday and retailers offer even bigger discounts than on Black Friday. In essence, Cyber Monday is an e-commerce term for the Monday following the Thanksgiving weekend. $754 on gifts$452 on travel$224 on entertainment, Download additional generational insights. Spending is down. Thanksgiving is another prominent festive period in American culture, with 88% of Americans eating turkey and spending money on elaborate meal plans. Similarly, holiday spending on luxury is expected to see a 4.4% increase. After the holiday joy has worn off, merchants may see an uptick in consumers seeking invalid chargebacks for goods they no longer want. 29% of young millennials (ages 26-30) will shop via smartphone this holiday season, versus 22% for all age groups. Over 41% of consumers say they plan to spend between slightly and much more money during this holiday season compared to last years. According to Halloween spending statistics, the overall spending for the Halloween season was projected to increase significantly from $2 billion in 2020. Friendly fraud occurs when customers dispute legitimate purchases with their banks, which often results in chargebacks for merchants. They will spend $2,759 on gifts, entertainment and travel close to double the $1,430 average. Subscribe to receive our monthly news and insights! Criminals will often use stolen payment information to purchase e-gift cards that can then be used without the risk of detection or resold for a profit. 2017 - Thu Nov 03 23:31:04 UTC 2022 PwC. Customers will be looking for more flexible payment options at checkout To build customer confidence, merchants can do things like provide visible delivery estimates on their websites to help guide customers purchasing decisions. With pandemic-related restrictions easing and population immunity on the rise, consumers are more comfortable spending time in stores for their holiday shopping this year. "Because of the increased pricing, their dollars won't go as far as they did last year.". Powered and implemented by FactSet. Thats up 20% over pandemic-ravaged 2020 and more than 10% over 2019. Please enter valid email address to continue. Last year, 4% of global holiday sales on a mobile device were made through a social media app. Consumers will continue to embrace new trends, primarily mcommerce, but the classic land-based shopping experience will remain a favorite for most US consumers. People walk through City Creek Center in Salt Lake City on Thursday, Oct. 20, 2022. They also spread brand awareness, encourage repeat purchases, and increase brand loyalty. Consumers are looking for the right deals this year before they commit to holiday shopping, travel and entertainment. Identify solutions can assess risk activity across channels. 25+ Holiday Spending Statistics to Know About in 2022 Algeria Angola Benin Botswana Burundi Cameroon Central African Republic Chad Comoros Congo Egypt Eritrea Ethiopia Gabon Ghana Guinea Ivory Coast Kenya Lesotho Liberia Libya Madagascar Malawi Mali Mauritania Morocco Mozambique Namibia Niger Nigeria Rwanda Senegal Seychelles Sierra-Leone Somalia So will the ability to respond to consumer expectations for bargains in time for the holidays. A review of the 2021 US holiday season and an early preview of the 2022 holidays, including our latest US retail and ecommerce spending forecast. In addition to a higher average spend, fewer low-income shoppers are sitting this season out: 13% in 2022 compared to 21% in 2021. Amid recession worries, merchants may be preparing for the worst, but Kounts survey reveals a more optimistic holiday shopper. Retailers can stay ahead of the curve by meeting customers where they are. After the traumatic 2020, consumer spending showed signs of recovery in 2021. Likewise, data shows that 42% of consumers plan to start their gift hunting earlier than ever, hoping to snag holiday presents before the prices skyrocket. Over 26% of Kount survey respondents say they will start their holiday shopping earlier this year compared to last year. These 2022 holiday shoppers plan to spend $823, on average, for a total of more than $178 billion in gift spending. Online deals and the return of holiday doorbusters Experts predict that consumers looking for discounts and deals will help drive e-commerce holiday sales growth Deloitte expects 2022 holiday e-commerce sales to increase 12.8% to 14.3% compared to last year, when they grew 8.4% and totaled $231 billion. The NPD Group Likewise, Generation Z was expected to spend an average of $1,154 during the winter holidays. Smartphones and tablets offer maximum convenience and allow users to order goods within seconds. The 2022 holiday shopping season has arrived at a time of high inflation and growing economic uncertainty, but Canadians still intend to spend. Amidst recession concerns, consumers are offering merchants a lot of earning potential. In fact, almost half (48%) expect to spend more this holiday season than they did in 2021, compared to 35% for all age groups. Oct 19, 2022 According to the Nation Retail Federation, US holiday spending, especially. Learn and work with some of the best in the market research industry. While lower gas prices are likely to continue fueling the recent rebound in consumer sentiment, purchasing power remains skewed toward high-income households. Over half (52%) of consumers are less concerned about COVID-19 compared to a year ago (up from 32% in 2021). By 2022, retail sales from e-commerce will comprise 16.3% of total retail sales. To do so, combine your own intimate knowledge of your customers based on the data theyve shared with advanced analytics. How will they shop this holiday season? And 50% of consumers told us they are excited about what the metaverse has to offer. For instance, studies show millennials will spend more cash than any other generation, but their contribution to online spending will be the lowest (63%). The different experiences and perspectives of our people are at the heart of our success. WHAT'S IN THIS REPORT? High-income households are most likely to have used virtual reality to buy physical products and luxury goods. While debit and credit cards will still be king this holiday season, over a third of consumers say they plan to use PayPal. What You Need To Know New data from consulting firm Deloitte projects retail spending to jump 4-6% in November, December and January For that same timeframe last year, spending skyrocketed 15.1% Those who plan to travel also are big spenders overall: At an average of $2,441 this holiday season, they will spend upwards of $1,000 more than the average consumer. Businesses can use these insights to provide personalized experiences and upsell and cross sell opportunities to good customers. Cyber Monday is among the most expensive holidays in the US and digital sales on this holiday continue to grow. Online shopping accounted for 24.1% of total holiday spending in 2021. Though more consumers are opting to shop earlier in 2022, 65% of total respondents say they will shop in November and December. Of course, retail executives boost consumer spending by deploying marketing campaigns as early as September. One in five (20%) holiday shoppers say they will spend less over the holidays because their economic situation has changed. Legal Statement. Since 2020, when trust became synonymous with health and safety, brand trust has figured prominently for consumers. But they should also be realistic about the capabilities of their fulfillment teams and be careful to not over promise on delivery times. Travel is back 89% of shoppers expect to see inflation impacting their 2022 holiday spending. 29% of Consumers Cite Finances and Economy as Reasons For Spending Less During the Holidays, Reports NPD. Millennials are the only age group spending more this holiday season than they did last year: 11% more. And consumers are showing an increased interest to shop during the months of September and October more than previous years. Adobe Analytics forecast online sales in November and December to rise 2.5% to $209.7 billion, compared with an 8.6% increase a year ago, as more people also return to in-store shopping and bring . Well never share your email address and you can opt out at any time. But this year, worries about a potential recession and other increased costs may make shoppers more inclined to have buyers remorse. However, gift cards are also extremely vulnerable to e-gift card fraud. This preference for digital is also driving increased interest in social media and advanced technologies for holiday purchases. Over 41% of consumers say they plan to spend between slightly and much more money during this holiday season compared to last years. Using advanced AI and machine learning, Kounts solutions gather data points from an interaction and compare them to the data in its Identity Trust Global Network. In fact, expensive shipping and returns were the two biggest reasons customers would abandon their holiday carts. Plans to shop mass merchants grew the most from 2021, while plans for pureplay ecommerce shopping declined most. Given the increased popularity of mcommerce and e-commerce, Cyber Mondays revenue share during the holiday season will only grow. And it appears that customers will expect these payment methods at checkout during the holidays. Explore the interactive charts below from early 2022 or visit our Holiday Hub additional timely holiday reports. Consumers are planning to spend an average around $1,400 this holiday season, two forecasts said Americans are getting all too acquainted with 2022's rising interest rates, but holiday shopping . In October 2021 alone, online consumers received over two billion out-of-stock notifications. MADISON, Wis. Holiday spending for 2022 is expected to slow down from last year's boom, even though the shopping season is starting earlier. last year. Get browser notifications for breaking news, live events, and exclusive reporting. That breaks down to an average of $1,455 spending this year per household, according to Deloitte's 2022 Holiday Retail Survey. After a few years of subdued spending, Twin Cities residents are ready to shell out more this holiday season. Although Christmas is months away, 59% of Americans are stressed about buying holiday gifts this year due to inflation. "It's more muted, but there is something to be said for the continued resilience of online spending and the persistence that's allowed spending to stay at these levels," said Adobe Digital Insights analyst Vivek Pandya. Moreover, low-income households comprise 65% of the overall non-spenders for the upcoming merry season, given that promotions and discounts will not negate the increase in prices. So its unsurprising that customers say the top ways merchants can boost their confidence this holiday season is with guaranteed delivery, free shipping and returns, and discount codes. Because during the pandemic there were shortages and stockouts, they're now in a position where they have too much supply of some products," he said. Home delivery, the most popular option for online shopping, continues to get more sophisticated as consumers become more accustomed to it and demand more options. For instance, retail growth set record-breaking numbers, reaching the most substantial growth in the past 20 years. Similar patterns emerged again this year, with almost half of all consumers 47% planning to travel this holiday. Six in 10 millennials belong to a customer loyalty program and 66% have a brand or retailer credit card, which influences online browsing (77%) and in-store shopping (79%) higher than any other age group. Fraudsters use the high-volume traffic of the holidays to blend in, making their high-velocity activity appear normal. Buy now, pay later (BNPL) options have grown in popularity over the past couple of years. We expect 2022 holiday retail sales to increase 3.3% to $1.262 trillion, with brick-and-mortar increasing 0.9% to $1.026 trillion and ecommerce climbing 15.5% to $235.86 billion.
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