Thanksgiving has passed, and Christmas is just around the corner, signaling the start of the holiday shopping frenzy.
This year, spending is expected to hit an all-time high, despite consumers showing caution in their choices.
Record Holiday Spending Anticipated
The National Retail Federation (NRF) predicts record-breaking expenditures this season, with the average shopper expected to spend $902 on gifts, food, decorations, and other holiday essentials. This marks a $25 increase per person compared to last year and $16 more than the previous record set in 2019.
“It’s a record year, but the small increase tells me that consumers are being cautious about their spending,” said Trae Bodge, a smart shopping expert at TrueTrae. “While people are shopping for holiday gifts, they’re looking for deals, sales, and ways to stretch their dollars further.”
Slower Growth but a Strong Season
According to a new report from Forrester, U.S. retail sales are projected to grow by 3.7% year over year, reaching a staggering $1 trillion. While this growth rate is lower than the past four years, it’s still higher than pre-pandemic averages, indicating robust consumer activity despite economic uncertainty.
A Shorter Shopping Season Spurs Urgency
With Thanksgiving landing on November 28 this year, the window between the two holidays is just 27 days—shorter than usual. Experts predict this compressed timeline will lead to intense shopping surges during key events like Black Friday and Cyber Monday.
“This shorter season means shoppers will rush to complete their purchases before Christmas,” Bodge noted. “I expect Black Friday and Cyber Monday to perform strongly, with last-minute shopping picking up closer to the holidays.”
Initial Insights Coming Soon
Retailers and analysts are eager to gauge the early success of this year’s holiday shopping season. The NRF plans to release data from the long Thanksgiving weekend on Tuesday morning, offering a clearer picture of spending trends and consumer behavior as the countdown to Christmas begins.
