KPMG has released its Consumer Pulse Survey: Holiday 2022, which reveals shoppers who are resilient while also being concerned over inflation and stockouts. The report found that consumers intend to spend, on average, $1,072 this holiday season — 6 percent higher than in 2021.
While the increase is welcomed, the authors of the report said it was not enough to mitigate the impact of inflation.
Matt Kramer, KPMG’s consumer and retail national sector leader, said while shoppers “remain resilient and plan to spend a bit more this holiday season, it will likely not outpace inflation. Consumers will be looking for promotions this holiday season, and retailers should be looking to respond by having desirable gifts for the budget-conscious consumer.”
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When asked about their top concerns this holiday shopping season, 85 percent of respondents cited inflation, while 63 percent said stockouts. Shipping delays came in third with 57 percent.
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The top three concerns for holiday shoppers this season are inflation (85 percent), stockouts (63 percent) and shipping delays (57 percent). Of those concerned about inflation, 37 percent said they would be buying fewer gifts per person, while 34 percent were planning to purchase less-expense items.
KPMG also noted that online spending is expected to remain relatively flat, “pointing to a preference to return to physical stores for several categories of spending.”
The authors of the report said holiday shoppers “are expecting an early start with 52 percent starting in October or earlier, but not as early as last year when 61 percent started in October or earlier, largely over the concern of stockouts.” Of those polled, 60 percent plan to do their holiday shopping on Black Friday, while 50 percent plan to do so on Cyber Monday. And in line with last year, KPMG said retail gift cards and apparel are the two most popular gift categories.
Regarding travel and holiday gatherings, KPMG found more consumers planning to attend more gatherings this year — 5.9 percent versus 5.5 percent in 2021. “Over 50 percent of holiday gathering guests plan to purchase food and beverages to bring to gatherings; over one-third plan to purchase apparel for these gatherings,” the authors of the report said, adding that more than one-third of respondents said they “plan to host this holiday season with average expected meal budget of approximately $264.”
And on Thanksgiving, one-third of those polled expect to travel, which is also slightly higher than last year. “Over 50 percent of travelers budget less than $250 on Thanksgiving travel, with male and high-income segments more likely to spend over $250,” KPMG said.