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Cost concerns are top of mind for this year’s holiday shoppers

The insight: The majority of shoppers—80%—plan to reduce their holiday spending this year, per a survey by Celigo, as inflation and economic pressures continue to weigh on consumers’ budgets and confidence.

  • Roughly half (49%) expect to spend less than $1,000 this year on gifts.

Zoom in: Cost continues to be the overriding factor in most shoppers’ purchasing decisions. Over three in four (77%) of consumers say they will prioritize value and look for cost-effective options for their holiday purchases.

  • The emphasis on value is also driving consumers to start their holiday shopping earlier than ever: Eleven percent began in July, per a survey commissioned by Bazaarvoice.
  • Almost 50% plan to begin in September, per Celigo, as shoppers look to lock in deals and avoid the holiday rush.
  • The proliferation of promotional events prior to Black Friday and Cyber Monday—including Amazon’s Big Deal Days and similar sales from competing retailers—is reducing the importance of the Cyber Five. Nearly one in three (28%) of shoppers said Black Friday will not be part of their holiday shopping plans, while 26% said the same about Cyber Monday.

The big takeaway: As has been the case for the entire year, retailers will have to lean into value this holiday season to attract price-conscious shoppers.

  • As well as keeping prices low, retailers should look for ways to offer more convenience to consumers—such as by expanding click-and-collect capabilities, extending return windows, or allowing flexible payment options such as BNPL—to encourage shoppers to spend.