Record Holiday Sales? Mostly, It’s The Price
‘Tis already the season for holiday spending forecasts, a steady drip of predictions that help retailers stock shelves and marketers tweak seasonal messaging.
Many tell the same story: Consumers will spend more, but that doesn’t mean their holiday budget is increasing. They plan to cut back in other areas.
PwC, for example, reports that consumers plan to actually cut their gifting budget to $708, from $721 last year. And they will manage gifting budgets more carefully to protect holiday travel plans.
Bain & Co. expects holiday spending to rise 4.5% year-over-year, with more than half of that coming from inflation.
Mastercard expects a 5.5% year-over-year increase for the Nov. 1 to Dec. 24 period — the strongest holiday growth since 2022, a peak inflation year. But about half of that growth will come from higher prices.