Holiday spending is poised to reach new levels this year, with more consumers seeking out deals to counteract rising prices.
According to recent findings from PwC, consumers are expected to increase spending by 7% this year, budgeting roughly $1,530 for gifts, travel, and entertainment. Roughly 40% of respondents said they’re planning on spending more in 2023 than they did a year prior.
How Shopping Will Vary Across Generations
Millennials will spend the most this year, averaging $1,918, per PwC. Gen X is following close behind, expected to spend roughly $1,782, followed by Gen Z ($1,275) and baby boomers ($1,148).
While holiday shopping will span both online and offline channels, Gen Z is more likely to visit stores in-person to browse for gift ideas compared to their older cohorts. Indeed, more than two-thirds of Gen Z respondents said they plan to do so compared to 58% of overall respondents.
Shopping, but on a budget
Holiday spending is increasing compared to a year prior, but that’s not to say that consumers aren’t watching how much they spend. In fact, more than ever, consumers are on the hunt for a good deal.
In the PwC survey, more than 77% of consumers said they’re looking for deals this holiday season, that’s a three-percentage point increase compared to 2022. What’s more, 86% of respondents said they plan to cut back discretionary spending in at least one area, including eating out, shopping for clothes, or going to movies and concerts.
PwC’s findings are in line with similar studies that were recently released. Last week, Shopify published its report on holiday expectations and also found that Gen Z shoppers are planning to spend a lot this holiday season, and many will be leveraging discounts.
Earlier this month, Adobe also released its findings which found that more consumers will be leaning on buy now, pay later services this holiday season, as they place greater emphasis on seeking out deals and having the ability to break down their purchases into smaller payments.
