Holiday plans, spending and expectations in 2024

Consumers are continuing to prepare for the holidays and many are reevaluating their budgets and expectations. While many purchased the bulk of their gifts during Black Friday, Small Business Saturday and Cyber Monday, others are still on the hunt for the perfect items. However, while most shoppers are enjoying the peak of holiday shopping, retail workers are stressed about being understaffed and are voicing their concerns over safety.

Young shoppers plan to treat themselves over the holidays

Despite inflation and the high cost of living, 65% of holiday shoppers plan to maintain their spending levels from the previous year, while 15% anticipate increasing their holiday spending.

The self-treating trend persists as more than half (61%) of shoppers including 73% of Millennials and 68% of Gen Z plan to purchase items for themselves while holiday shopping. Surprisingly, physical retail stores emerged as Gen Z's top choice (58%), surpassing Amazon (55%) and TikTok and Instagram (54%), mirroring Gen X's preference, with 62% turning to stores for holiday gift inspiration. However, Amazon remains the go-to for other demographics, with 53% of Millennials and 54% of Baby Boomers relying on online marketplaces.

Fashion and apparel gifts are slated to take the lead, grabbing the attention of 57% of shoppers, with personal care and beauty gifts close behind at 53%. Electronics also came in strong at 49%, while food and beverage gifts are on the radar for 44% of folks. Toy and baby gifts seem to be popular too, with 33% planning to buy them. For those outdoor enthusiasts, sports and outdoor gifts are catching the eye of 28% of shoppers. And hey, don't forget the fur babies! Pet gifts are on the list for 20% of shoppers, while home improvement gifts round it out at 19%.

The Salsify 2024 Consumer Holiday Shopping Report gathered insights from 1,026 shoppers across the U.S. and the U.K. Learn more.

Global holiday expectations 

Australians are budgeting $80 more for Christmas gifts this year and $100 more for food and drink during the festive season. Despite higher spending intentions, many will still be on the lookout for bargains, with 67% looking to save on Christmas expenses this year. Some money-saving tactics include buying fewer presents (41%) and cheaper food alternatives (27%). Practical gifts that relieve the household budget were prioritized with gift cards (46%) and money (41%) topping the wishlist. Other desired gifts include clothes or shoes (33%), food or drinks (30%) and skincare and cosmetics (28%).

Eleven percent of New Zealanders are hoping to receive nothing but only 4% plan to buy no gifts. When it comes to Christmas preparations, 61% prefer the in-store experience rather than shopping online (39%). Price (79%) and quality (62%) are the key drivers when purchasing gifts while brand reputation (27%) and recommendations or reviews (20%) have less of an impact.

Many working Brits (37%) don't expect to have a workplace Christmas event this year. Sixty-seven percent look forward to the Christmas closure while 5% would prefer not to have to take leave over the holiday. Thirty-eight percent of those in Singapore expect their holiday party to be the same as 2023, 21% expect it to be smaller and 31% do not expect a Christmas party. When it comes to travel, 50% of Singaporeans plan to take a trip this year with 24% planning to travel internationally.

Globally, there is a consensus that the ideal Christmas is one spent enjoying a meal with family, preferably at home. Those in Australia (55%) and New Zealand (55%) are most likely to agree with this sentiment. Those in Singapore (16%) and America (14%) were the most likely to prefer to spend the day alone.

Pureprofile conducted this research with 4,376 people across Australia, New Zealand, the U.K, the U.S. and Singapore. Learn more.

Diners ready to celebrate and spend

Despite the shifting consumer spending patterns in 2024, the holiday season is bringing a wave of excitement among diners, with 68% planning to celebrate at restaurants or bars. Reservation and experiences platform Tock found that 65% of respondents are pretty or extremely enthusiastic for the holiday season. Diners have planned ahead this year, with 31% booking three to four weeks out. Nearly half (49%) of respondents will be seeking a reservation during the 4p.m. to 6 p.m. early bird time slot and 52% of diners are planning group outings of eight or more.

Eighty-eight percent of diners are prepared to spend more than they would on a typical night out and 17% of diners are willing to increase their spending by 50% or more. Desserts are proving to be a sweet spot for holiday diners, with 62% most likely to purchase dessert as an add-on for their holiday meals. Following closely are holiday-themed gifts (36%) and wine pairings (35%) and a significant 31% expressed interest in festive non-alcoholic beverage options.

Tock’s consumer survey polled over 1,000 diners on their projected holiday dining preferences and habits. Learn more.

Retail workers fear for safety

A majority of American retail workers (57%) report feeling unsafe going into the peak holiday shopping season, finds Motorola Solutions. Many retail managers and staff say they have experienced an increase in various forms of crime in their stores in the past year. The most common incidents reported were petty theft (66%), grab and runs (48%) and hostile customer interactions (46%). One in 10 also said they have experienced physical attacks from customers. Over 65% of retail workers expect to be understaffed this holiday season affecting how safe they feel going into the peak shopping season. Sixty-eight percent of those who expect their stores to be understaffed say they don't feel safe and 50% said they are concerned for the safety of their shoppers.

Respondents pointed to access control systems (35%), license plate readers (32%), panic buttons (32%) and body cameras (20%) as measures that make them feel safer but few reported having those security measures in place. Of those surveyed, 12% said they have access control systems, 9% have panic buttons, 7% have license plate readers and 6% are using body cameras.

Researchscape conducted this survey among 1,322 full- and part-time U.S. retail employees in September 2024. Learn more.

Gifts boost employee satisfaction

Holiday gifting plays a critical role in fostering employee satisfaction and retention with 74% of employees hoping to receive a gift from their company during the holiday season. Snappy’s 2024 Holiday Gifting Report indicates that 71% of employees say receiving a holiday gift improves their perception of their employer. Additionally, 54% of employees in 2024 say they are more likely to stay with a company that consistently shows appreciation through gestures like holiday gifts.

Sixty-three percent of employees say that their job satisfaction increases after receiving a meaningful holiday gift with 38% saying that this boost in satisfaction lasts 3-6 months. Fifty-four percent of employees are more likely to stay with their current employer if they receive a holiday gift and 64% are more likely to invest additional time and energy into their work if they receive a gift. Seventy-nine percent agree that receiving a holiday gift makes them feel personally recognized and valued.

The research was conducted with over 1,500 respondents employees across various industries. Learn more.

Shoppers rethink holiday budgets

Shoppers are returning to brick-and-mortar stores in significant numbers this holiday amid a notable cutback in post-election seasonal spending. In-store shopping intentions have risen by 53% year-over-year, suggesting a potential shift away from the pandemic-driven dominance of online shopping. However, 48% of shoppers plan to visit both physical and digital stores to check off their holiday lists. Shipping costs seem to be less of a deterrent this year, as 36% more consumers are willing to spend above $20 on delivery, indicating a growing willingness to pay a premium for faster shipping. This trend is particularly prevalent among Gen Z (nearly 25%) and male shoppers (23%), potentially indicating a greater tendency for last-minute purchases. Loyalty programs are also gaining traction, with a 64% rise in shoppers influenced by their benefits.

There was a 20% drop in consumers who are turning to platforms like Instagram and Pinterest for inspiration. Nearly two-thirds of shoppers with incomes over $250,000 plan to make purchases directly on social media platforms, favoring Facebook (75%) and YouTube (69%) during their shopping journey.

The recent U.S. presidential election seems to have ushered in a period of cautious spending for some consumers with one-third of shoppers planning to reduce their holiday budgets. This sentiment is further reflected in the waning popularity of gift cards (down 11%) and a declining preference for big-box retailers like Walmart and Target (down 51%) and online marketplaces such as Amazon and eBay (down 66%). Coupons appear to be falling out of favor with only 6% of respondents planning to use more coupons this year.

The study was conducted by First Insight with 1,560 U.S. consumers from November 6-8. Learn more.

Inflation affects travel plans

Fifty-two percent of Americans plan to travel overnight for leisure in the next few months, and hotels remain the top lodging choice for both leisure (45%) and business travelers (59%). Sixty-six percent of Americans are more likely (25%) or equally as likely (41%) to stay in a hotel this fall or winter compared to a year ago with 34% likely to travel overnight for Christmas.

Inflation is the leading factor affecting travel with 50% saying it is the reason they are likely to reduce their chance of traveling overnight, traveling by airplane (44%) and renting a car (42%). When it comes to sustainability, 27% say it is very important, 39% indicate it is somewhat important and 9% say it is not important at all when they travel.

The research was conducted by Morning Consult on behalf of the American Hotel & Lodging Association among a sample of 2,201 U.S. adults from September 30-October 2. Learn more.

The popular gifts this season

The most popular gift categories this season include clothing or accessories (54%), gift cards (44%), toys (36%), books, video games and other media (31%), food and candy (30%), personal care or beauty items (28%) and electronics (23%). The National Retail Federation found that for adults shopping for children, the top three gifts for boys include Legos, Hot Wheels and cars. For girls, the top items include Barbies, dolls and Legos. Sixty-six percent of shoppers plan to engage in at least one charitable activity such as donating money or items. Gift cards will remain a popular gift this holiday season with restaurants being the top category (30%), followed by department stores (25%) and coffee shops (22%).

The NRF surveyed 8,135 adult consumers from November 1-7. Learn more.