Rising prices and pesky inflation have put the focus back on gift cards this holiday season.
Two new holiday spending surveys signal that gift cards are the most in-demand item for givers and receivers, while clothing and accessories are the second big priority.
NRF
According to the National Retail Federation’s (NRF) study, 55 percent of holiday shoppers said they would like to receive gift cards this year, followed by apparel or accessories at 49 percent.
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Prosper Insights & Analytics polled 8,103 adult consumers on Oct. 2-9 about their holiday plans.
“The winter holidays are an important tradition to many American families, and shoppers are prioritizing their holiday purchases for the people most important to them,” NRF president and CEO Matthew Shay said. “Retailers have been preparing for months to ensure their inventories will meet demand, while at the same time helping consumers maximize their budgets with shopping events and discounts running throughout the extended holiday shopping season.”
Respondents said they expect to spend $875 on average on gifts, decorations, food and other key seasonal items, or $42 more than a year ago. But of that spend, only $620 will be allocated to gifts. In addition to gift cards and apparel and accessories, respondents said they want to receive books, video games and other media (28 percent), and personal care or beauty items (25 percent). Moreover, 23 percent of holiday shoppers said they plan to gift experiences, such as travel and entertainment events.
A total of 58 percent said they plan to shop online, followed by 49 percent heading to department stores, 48 percent to discount retailers and 44 percent at grocery and supermarkets. And a general theme throughout most holiday surveys is that people are shopping around to get the best deal possible. In the NRF survey, 62 percent said sales and promotions are even more important to them this year than last, with 36 percent planning to cut back on other areas to cover the cost of holiday items. Thirty percent said they are purchasing gifts for fewer people and another 27 percent will buy less for themselves.
Deloitte
Deloitte’s annual holiday retail survey also indicates that gift cards have gained ground as people become wary of what they see as higher prices in categories, such as apparel and food and beverage.
According to the 2023 Deloitte Holiday Retail Survey, the average consumer plans to spend $300 on gift cards, up from $217 in 2022. Seven in 10 respondents said they expect higher prices in key categories, including apparel and accessories. Fifty-seven percent said they were less confident in their ability to stay within budget, and are planning to modify their shopping behavior. This includes buying eight gifts versus nine in 2022, with 54 percent—up from 48 percent last year—planning to add items to their wish list or online shopping cart to wait for deals. And similar to the NRF survey, while 75 percent said they are tempted to buy a gift for themselves, 53 percent said they will reduce self-gifting to preserve their budget.
Deloitte surveyed 4,330 consumers between Aug. 30-Sept. 8. Their average spend is estimated at $1,652, up from 14 percent last year. And 95 percent of consumers said they plan to participate in the holiday season, up from 92 percent in 2022 and 88 percent in 2021, representing a return to pre-pandemic shopping behaviors, Deloitte found. Respondents also said non-gift purchases are a priority this year as they refresh holiday decorations, furnishings and non-gift apparel.
Respondents in the survey also said they plan to do more in-store shopping to avoid shipping costs. Eight in 10 said they are willing to meet a minimum purchase to earn free shipping, and are willing to spend $40 on average. In addition, eight in 10 also said they have “little to no trust in retailers’ ability to use AI responsibly in their operations,” with only two in 10 planning to use Generative AI for holiday shopping for deal-hunting. And with shorter holiday lists, consumers plan to visit fewer stores this season (4.2 versus 5.9 last year).
“Although inflation shows signs of moderating, consumers have come to expect higher prices and are adjusting their holiday spending accordingly,” Nick Handrinos, vice chairman of Deloitte LLP and the U.S. retail, wholesale and distribution and consumer products leader, said. “We expect to see shoppers make their lists and check them twice for deals, but a return to pre-pandemic spending levels shows promise for the season overall.”
