Consumers plan on buying fewer gifts and spending less this holiday season, with an 18 percent reduction in their average budget from last year, a KPMG LLP survey found. Forty-one percent of consumers also said that they are not planning on going to Black Friday sales in person.
“Faced with considerable uncertainty and reduced household income, consumers are spending less this holiday season, focusing on essential purchases for the home and gifts for close family members,” said Scott Rankin, National Advisory Leader, Consumer & Retail, KPMG LLP. “Retail customers are forming new shopping habits, which are expected to continue into 2021 and beyond.”
Average spending per person this holiday season is expected to decrease to $515 from $627 last year, with the majority of consumers shopping either in October (25%) or November (38%), although a fair number began as early as August (12%). In addition, 60 percent of consumers plan to give to the same number of people this holiday season, while 36 percent will give to fewer people, according to KPMG’s 2020 holiday shopping report, “Season of Reckoning: 2020 COVID-19 Consumer Pulse/Holiday Report.”
Consumers also indicated that Black Friday and other significant retailer events will look different this year, with less in-store shoppers and 41 percent saying that Black Friday is their most important shopping event, compared to Cyber Monday or Prime Day.
“In-store retailers hoping for a holiday reprieve may be disappointed,” added Rankin. “The
migration to online continues across nearly all retail segments.”
U.S. consumers foresee a longer, uncertain road to full economic recovery
Holiday spending: smaller gift budgets, enduring traditions
This survey was conducted in September 2020, and it polled 1,000 U.S. consumers to learn about the continuing economic impact of COVID-19, anticipated retail spend for the holiday season, and shopping preferences.
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