Dive Brief:
- As consumers bear the brunt of inflation, 4Over’s survey of 1,004 U.S. consumers found that 73% anticipate price increases for the upcoming holiday season. The same percentage of respondents said they are watching their spending more closely this year than last year.
- Fifty-nine percent of survey respondents said they were stressed about purchasing holiday gifts due to inflation. Fifty-six percent said they plan to buy gifts during Labor Day, Black Friday and other sales events.
- Survey respondents said they planned to spend $575.64 on gifts this year, down from $611.19 last year. While 61% expect to buy fewer gifts, under half (41%) said they expect to spend more this year, per the survey results.
Dive Insight:
4Over’s research indicates that inflation has bluntly impacted consumers’ expectations for the 2022 holiday season, prompting them to cut back on other costs. Among the expenses that consumers said they planned to reduce were dining out (36%), activities such as movies or concerts (27%), clothes (20%), travel (13%) and beauty appointments (12%), the survey found.
Nearly one-third (31%) of the survey respondents said they plan to start their holiday shopping in November, and almost a quarter (23%) will buy gifts as soon as they find them.
As for how they planned to pay for these purchases, nearly one-fourth (24%) of respondents said they’ve already begun saving for the holidays. Over half (53%) said they plan to pay for their holiday gifts with a credit card, followed by points or rewards incentives (35%), their savings (29%), gift cards (24%) and buy now, pay later services (15%).
4Over’s survey echoes similar research indicating that consumers have altered their shopping habits to account for rising inflation. Another recent survey found that 85% of U.S. respondents cited inflation as the reason for changing their shopping habits. The survey found that nearly eight in 10 (79%) said they sought discounts and (77%) reduced their spending.
In response to consumers’ inflation concerns, retailers such as Target, Best Buy and Walmart have updated their projections to account for a decline in profit margins. Given concerns about rising prices, shoppers are seeking markdowns on the items they need and going without what they can’t afford.
