Deloitte: Shoppers will spend more money this holiday season
Despite the government shutdown, new taxes and other potential setbacks, consumers will be spending more money this holiday season. A new report from Deloitte found the average consumer expects to spend $421 on holiday gifts for their friends and family this year, up from the $386 doled out in 2012.
Not only are they spending more money on average, they’re also buying more gifts. The average shopper plans to purchase 12.9 gifts, which is the first time in five years that number has edged upward. People will also spend more money on non-gift items, such as decorations and other trinkets, highlighting that consumers have bigger holiday budgets in general this year.
“Consumers are feeling more generous about gift spending, and we are encouraged by their plans to spend more on going out for celebrations, decorating their homes and treating themselves and their families to ‘early gifts’ while holiday shopping this year,” Alison Paul, vice chairman of Deloitte, said in a press release.
Retailers are doing their part in encouraging more sales as well. Many shoppers cite free shipping, coupons, free returns and other perks as key drivers of their greater budgets. Lax policies and financial incentives relieve much of the holiday stress they may feel otherwise.
On the other side, merchants must ensure they are adequately prepared for the upcoming holiday season. That means working out any kinks in their distribution chains to ensure they don’t run out of inventory and customers get their gifts on time. Although eCommerce operations are always important to success, that is even more the case when it comes to the busy holiday shopping season.