US Holiday Shopper Spending Expected to Reach Record $890 Per Person

Consumers are projected to spend $890.49 per person on average this holiday season. This is according to a National Retail Federation (NRF) survey conducted by Prosper Insights & Analytics. This amount is the second-highest in the survey’s 23-year history. Last year’s record was $901.99 per person.

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Katherine Cullen, NRF Vice President, stated that Americans prioritize spending on loved ones despite economic uncertainty. Retailers are preparing to deliver deals and value. Of the total spending, $627.93 will be for gifts, and $262.56 will be for seasonal items like food, decorations, and cards according to the survey.

Shopping Trends

Early shopping remains popular, with 42% of shoppers planning to start before November. The main reasons are to spread out their budget (54%) and avoid last-minute stress (41%). However, 60% anticipate finishing in December according to the NRF.

Tariffs remain a concern for 85% of holiday shoppers, who anticipate higher prices. 63% plan to wait until Thanksgiving weekend to shop, up from 59% last year per the NRF.

Phil Rist, Prosper Executive Vice President, noted that families with children are expected to increase their gift budgets by over $30 on average. The NRF survey indicates that online shopping remains the top destination, with 55% planning to make purchases digitally.

Payment Methods and AI Usage

PayPal’s latest Holiday Shopping Survey reveals that 77% of “AI shoppers” plan to use AI this year, with 34% using it to search for discounts. Half of consumers will use buy now, pay later (BNPL) loans to finance holiday purchases, citing affordability and better budget management.

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Michelle Gill, general manager at PayPal, said that shoppers are navigating a new era of smarter spending, with BNPL becoming mainstream. 40% of Americans have used AI to find deals and compare products according to PayPal.