Did you know that, on average, Americans are expected to buy gifts worth $998 this year, according to a survey by the National Retail Federation (NRF)? The Covid-19 pandemic has brought tough times but that hasn’t stopped Americans from shopping. Shopping trends this Christmas are said to be rising after the pandemic slump.
During the last holiday season, a total of $789 billion was spent by Americans. Here are how the statistics for shopping look this Christmas and what are the key takeaways from the survey.
Current statistics for Christmas
Americans are likely to spend $998 dollars during this holiday season, especially for Christmas. According to the NRF survey, out of this $998:
- $118 would be for purchases that don’t include gifts.
- $648 would be for gifting presents to family, friends and others.
- $231 would be spent on decorative items, cards and food.
Inflation also has a part here. The CPI (Consumer Price Index) has been increasing rapidly and that also impacts the prices of items people buy during Christmas.
Christmas shopping trends last year
In 2020, the retail sales during Christmas increased by 8.3%. That was more than what we saw in the past 5 years and these numbers are just for the month of November and December. The main reason for this increase in shopping was that people didn’t have anything else to spend the money on because traveling was already a far-fetched dream. So, people spent their money into shopping.
Because of the pandemic, people prefer to not visit a store and fulfilled their desires of shopping through online platforms. In 2020, online sales contributed to $209 billion of spending which is more than 24% compared to 2019.
Cost of gifting this Christmas
When we think about gifts, the first thing that comes to mind is clothing or accessory items. This is the largest contributor to the total gifting picture, amounting to 22%. After that comes giving cash, subscriptions, data plans and gift cards to friends and family. And the last on the list is giving food items, beverages and electronic appliances that comprises 14% of the total gift costs.
Have a look at the below table based on the 2021 Deloitte holiday retail survey to understand how much Americans spend on average for different gifting items.
|Category||Spending on average|
|Health and wellness||$156|
|Toys and hobbies||$187|
|Home and kitchen||$193|
|Food and beverage||$220|
|Gift cards and other||$235|
|Electronics and accessories||$243|
|Clothing and accessories||$304|
For the current holiday season, the contribution of gift cards is likely to increase by 27%. On average, Americans are anticipated to spend $272 dollars on gift cards in 2021.
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Holiday spending across the country
According to a report issued by the US Chamber of Commerce, Maryland is the highest spending state. Below is the list of the highest holiday spending states and how much an individual spends on an average.
- Maryland – $2,241
- Utah – $2,195
- Hawaii – $1,887
- New Jersey – $1,843
- Virginia – $1,596
Here are the lowest holiday spending states with how much an individual spends on an average.
- West Virginia – $60
- Vermont – $111
- Montana – $328
- Louisiana – $342
- New Mexico – $373
Holiday spending demographics
The age of consumers also matters when it comes to holiday spending. People having stable jobs such as those between the age group of 25 to 34 have more capacity to spend on gifting. And thus their spending is higher compared to people aged below 25.
On average, men are expected to spend around $1046 during this holiday season while the number is $952 for women as per the data by NRF. You can get to know more about this holiday spending pattern from the table below.
|Age group||Spending amount|
|More than 65||$1077|
|55 to 65||$999|
|45 to 54||$1162|
|35 to 44||$1084|
|25 to 34||$889|
|18 to 24||$650|
Stopping pattern this holiday season
According to a survey, people are afraid to go into stores and shop. Due to Covid-19, 40% of Americans fear shopping in-store. Though the good news is that the percentage of this has reduced as in 2020, Christmas shopping trends in stores was 51%.
Around 62% of shoppers use online shopping platforms, according to the report. Even retailers have started to increase their online presence in order to attract consumers. In this digital era, social media platforms like Instagram, Twitter and Facebook also have a higher influence on people and play a vital role in attracting Gen Z and millennials.
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The bottom line
Holidays are going to come and go but the main factor is that you have to control your spending and still enjoy the season. Here’s how much of your income you should spend this Christmas. If you are wondering how you can do it the answer is simple. Make a list, create your budget, try giving handmade gifts and plan in advance to reduce spending and save money. Implement these simple steps and enjoy this Christmas with friends and family.