The 2023 Holiday Shopping Buying Volume Forecast – And It's Still Good
October 26, 2023
It's not even Halloween yet and the holiday shopping ads are already in full swing on the Telly. Autos, perfume and jewelry are attempting to influence selections early in buyers' decision making. It begs the question: "How financially fit are shoppers to keep spending this season? " Luckily there is a recent poll that can give us insight.
According to a study commissioned by Nerd Wallet, there is a tidal wave $184 Billion U.S. shopping spree coming this season. If you missed the Nerd Wallet 2023 Holiday Shopping poll, don’t fret, I'll give you a synopsis here.
The survey was conducted online within the U.S. by The Harris Poll on behalf of Nerd Wallet in August from over 2,000 adult respondents, among whom 80% plan to shop and purchase gifts this holiday season.
But some shoppers have shackles holding back their spending. Last year's 2022 holiday shoppers haven't paid off those credit card balances yet. 52% of Americans incurred credit card debt when shopping last holiday season; among them, 31% have still not paid off these balances which could pump the breaks on their spending this year.
Obvious good news items are that the U.S. economy is surprisingly resilient and those Americans that want to work are gainfully employed which portends money to spend on holiday gifts.
Credit Cards Allow the Spending to Continue
Most of this year's holiday shoppers will purchase their gifts on a credit card. In the poll, 74% of 2023 holiday shoppers plan to use credit cards to buy gifts. I know you don’t like paying credit card interchange fees, but they do plan to charge $680 on average this year and they just can't fund those purchases without credit cards. Just ring up the sale.
Inflation will continue to tighten holiday budgets. 56% of 2023 holiday shoppers won't be able to buy as many gifts as they'd like to this year due to inflation. Inflation was a whopping 8.3% in 2022 but has moderated to roughly 3.7 % this season taking a bite out of even the most generous gift givers.
The net of it is, even with these head winds of geopolitics, credit card back debt and rampant inflation, shoppers are still going to shop and spend large.
Continue to make a big deal out of "Shop Small" and "Black Friday".
The same surveyed shoppers plan to shop small this holiday season. Over 24% of 2023 holiday shoppers say they’ll shop more for holiday gifts at local and/or small businesses this year to support their community. American Express will soon send you their "Shop Small" decal, wear it proudly.
Consequently, due to all the above this year's holiday shoppers are taking steps to save on the purchases they do make. 58% plan to shop on Black Friday, Nov. 24 looking for deals, so put your lights on, open the front door and welcome them in.
Happy Selling.
– Al Valente
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