Consumers have been busy making online and in-store purchases for over the last few weeks and this is set to continue in the run up to Christmas. Yet as inflation persists, many people will be making sacrifices.
A survey reveals that 60 percent of consumers are making holiday-specific sacrifices, with the majority reducing gifting and travel, and 61 percent of consumers plan to keep their budget restricted even if inflation improves. These findings relate to the U.S. and similar trends are apparent in other countries, like the U.K.
The website Shopkick has surveyed over 10,000 U.S. consumers (running the survey between November 3 – November 7, 2022) in order to understand the impact, the current economic climate is having on consumers’ holiday spending.
The main outcomes have been provided to Digital Journal and they reveal:
Inflation in the Aisle
Ninety-four percent of consumers say grocery items are noticeably more expensive, specifically eggs, meat, poultry, and seafood (85 percent). Dairy (81 percent), fresh produce (74 percent), bread, and beverages (68 percent respectively) follow closely behind.
Economic Challenges
It has been a difficult year for consumers and there is no end in sight. The majority (55 percent) of consumers anticipate economic challenges worsening over the next three months.
Tightened Budgets
Inflation has had a major impact on consumers’ finances and they are adjusting their spending because of it. In fact, 66 percent of consumers say their budget has been affected by the current economic climate.
Prioritizing the Family
Due to high prices, consumers are reconsidering what holiday purchases they make and for whom. This year, 74 percent of consumers are choosing to prioritize their children over their significant others (38 percent), parents (29 percent), extended family (24 percent), and friends (17 percent).
Seasonal Sacrifices
To help make meet economic demands, 60 percent of consumers are making holiday-specific sacrifices. When asked to rank in order of probability, the majority plan to reduce the overall number of gifts they purchase this year, whereas others do not plan to travel to see friends and family, purchase holiday decorations, or host holiday gatherings.
Finding Ways to Save
Most consumers (56 percent) are planning to take advantage of deal days such as Black Friday and Cyber Monday (a 13 percent increase from September). With tightened budgets, shoppers are also making other sacrifices, such as prioritizing experiences and activities over physical gifts (25 percent), avoiding big-ticket purchases (24 percent), and picking up additional shifts at work or getting a second job (22 percent).
Stretching Dollars
Consumers are also adjusting their grocery shopping habits with the majority of consumers (69 percent) utilizing shopping rewards apps and coupons. Others are making meals in advance and sticking to their grocery list (48 percent), taking fewer trips to the store to save on gas (48 percent), and substituting more expensive ingredients for less expensive alternatives (37 percent).
