Projected growth in holiday spending could reach up to 5%, according to NPD.
As the holiday season approaches, retailers and consumers are bracing themselves for a unique shopping landscape. According to various reports, including one from Klarna, consumers are planning to increase their spending on gifts this year compared to 2020. Deloitte predicts that holiday shopping sales could rise between 7% and 9%.
Klarna's report indicates that 29% of consumers, or nearly a third, anticipate spending more this year. Interestingly, one-third of shoppers expect to purchase more gifts due to visiting family and friends over the holidays. However, the report does not specify the expected increase in holiday spending from November to December compared to earlier reports.
In terms of budget, over half of the consumers increasing their gift budgets fall between $101 and $500. On the other hand, higher spending is primarily expected from people who plan to spend $1,000 or more.
Free shipping is a more significant influence on where consumers choose to shop this year, with more than half of shoppers (58%) open to shopping in stores now that vaccines are widely available. The number of store-only shoppers is increasing and transitioning into omnichannel shoppers.
The NPD Group's research suggests that the majority of shoppers think this year's holiday season will resemble last year more than 2019. This sentiment is echoed by Marshal Cohen, chief retail industry adviser for NPD, who states that new optimism and underlying uncertainty make this a complex holiday season for consumers and marketers.
Retailers and manufacturers that remain flexible will be able to navigate the diverse landscape of consumer behavior and achieve a successful holiday result, according to Cohen.
While specific predictions about overall holiday spending in 2021 from the NPD Group were not found in the provided search results, the Group did provide some insight on consumer spending trends related to the gaming industry for 2021. According to their data, U.S. consumer spending on video gaming in the third quarter of 2021 reached $13.3 billion, which was a 7% increase from the previous year and marked the highest third-quarter spending in history.
Considering October, early January, the projected increase in holiday spending could be 5%, according to Klarna's report, although this figure does not appear to be mentioned in the report's specific predictions.
In conclusion, the 2021 holiday shopping season is shaping up to be a blend of optimism and caution. With consumers planning to spend more, retailers are gearing up for a busy period. However, the ongoing pandemic and its impact on consumer behaviour continue to present challenges that require flexibility and adaptability.
- As the holiday season progresses, consumers are planning to increase their spending on gifts, with nearly a third (29%) expecting to spend more this year due to family and friend visits, according to Klarna's report.
- In terms of personal finance, over half of the consumers increasing their gift budgets fall between $101 and $500, while higher spending is primarily expected from people who plan to spend $1,000 or more.
- Free shipping and the widespread availability of vaccines are influencing consumer shopping behavior, with more than half (58%) of shoppers open to shopping in stores and the number of store-only shoppers increasing and transitioning into omnichannel shoppers. This year's holiday shopping season is shaping up to be a blend of optimism and caution, requiring flexibility and adaptability from retailers and marketers as the ongoing pandemic continues to impact consumer behavior.
