For some of us, the holiday season is a long-awaited opportunity to take our foot off the throttle, unwind with friends and family, and give gifts. However, relaxing is the last thing on the minds of retailers. The holidays may often determine the success or failure of an entire retail year.
After the pandemic, holidays and festivities have resumed, but they are being made more difficult by the imminent economic downturn and the growing cost of living. We assembled the necessary holiday spending statistics for 2022 to shed more light on holiday shopping strategies and the typical amounts spent on providing gifts.
These statistics and projections shed light on the behavior of consumers and illustrate the status of the economy as a whole. So, let's examine how much US consumers will spend throughout the next holiday season. 68 percent of customers also anticipate greater holiday prices in 2022. There is no getting around the fact that inflation has arrived and will have a significant impact on those with lower incomes. Therefore, it is not surprising that almost two-thirds of customers anticipate increased costs during winter vacations.
Furthermore, low-income households account for 65 percent of all non-shoppers during the approaching holiday season, given that promotions and discounts will not offset the price increase. The estimated average holiday expenditure per person in 2022 is $1,802. Social class and generational variations will continue to influence spending in 2022. For example, research indicates that millennials will spend more cash than any other generation. In fact, of all generations, their share of internet spending will be the highest (63%).
Again, the highest-earning population ($100,000+ annually) will spend the most (average: $2,616), which is 340% greater than the lowest-earning population (below $25,000 annually) (average: $700). Statistics on estimated spending and gift-giving in 2022; 51% of US shoppers want to purchase fewer presents this year compared to 2021. Given the reasons that have been driving up the cost of consumer products, it makes sense that half of the American buyers want to buy fewer gifts for their friends and family.
Similarly, data reveals that 42% of customers want to begin their Christmas gift shopping earlier than ever before to acquire goods before costs spike. In addition, 17% of customers are uncertain as to whether they would purchase any Christmas presents in 2022. 89% of customers anticipate that inflation will affect their holiday expenditures in 2022. (NACS)
According to holiday shopping data, nine out of ten customers anticipate increased prices and more costly services for the forthcoming holidays. 59% of buyers anticipate that the consequences of inflation will range from "moderate" to "substantial."
When questioned about their purchasing intentions and plans, the majority of customers anticipated spending between $25 and $50 on presents on average. On the other hand, more than half (59%) of respondents indicated they intend to spend more than $200 on Christmas gifts.
During the 2022 Christmas season, mobile commerce revenues are expected to hit $115 billion. The popularity of purchasing presents via mobile devices is increasing, and mobile commerce might witness a 20% year-over-year increase over the approaching holiday season. According to statistics, live stream shopping app installations in the first five months of 2022 increased by 77% year-over-year. Similarly, the majority of current applications, such as TikTok, have built-in buying capabilities, which increases the average amount spent on Christmas and other winter holidays.
In 2022, eCommerce will account for 18.4% of holiday retail sales in the United States. Due to barriers such as more competition, cost-conscious clients, and supply chain difficulties, this Christmas season may be less profitable than usual for many firms. eMarketer expects that Christmas sales growth in the United States would decrease this year, with total retail sales anticipated to increase by only 7% compared to 15.4% last year.
In 2022, it is expected that non-eCommerce retail holiday sales would climb by just 5.9%, which is significantly lower than the 16.5% increase that is anticipated for 2021. This year, the rise of Christmas sales will be driven by the expansion of internet commerce. The rate of growth of e-commerce is expected to expand by 12%, which is considerably higher than the growth rate of 10.4% recorded in the previous year.
64% of American people are extremely concerned about inflation. The rate of inflation will be the primary concern for customers during the Christmas season of 2022. As a matter of fact, according to a survey that was carried out by NPR and Ipsos, inflation is the number one worry, with 42% of American consumers naming inflation and rising expenditures as grounds for concern in the survey.
Conclusion:
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The evidence is clear: through real-time analytics, targeted interventions and cost-cutting measures, businesses can improve their bottom line, increase profitability, and navigate the competitive retail environment in which they find themselves. The future of retail lies in the use of advanced analytics, with technology leading the charge in marketing and leveraging relevant data to enhance customer experience.
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