US Holiday Shopper Spending Expected to Reach Record $890 Per Person
TL;DR
- This article details the NRF's holiday spending forecast, projecting an average of $890 per person. It covers key trends like early shopping to manage budgets and avoid stress, and the significant impact of AI in finding deals and comparing products. Additionally, the rise of Buy Now, Pay Later services for affordability and budget management is highlighted.
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.
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.
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.
