Holiday Spending to Rise

28 percent to spend on their homes, up from last year
October 10, 2016Allison Zisko

NPD LogoPORT WASHINGTON, N.Y.—Consumers plan to spend 3 percent more for holiday-related expenses this year, including those for their homes, than they did last year, and more of them plan to use e-commerce to do so, according to The NPD Group.

“All signs point to a holiday retail season that will outperform last year’s,” said Marshal Cohen, chief industry analyst for The NPD Group. “The unvarying holiday spending intentions expressed by consumers are a sign that even this year’s intense election cycle has done little to dampen consumer confidence going into the holiday season, which we forecast to grow moderately.”

According to NPD’s Holiday Purchase Intentions Survey, consumers plan to spend an average of $636 on holiday-related expenses. When questioned more broadly, 14 percent of consumers plan to spend “more” than they did during last year’s holiday season and 17 percent say they’ll spend “less.” The results were virtually unchanged from 2015 results.

A growing percentage of those surveyed said they planned to spend on their homes—28 percent this year, compared to 21 percent last year.

When asked how the state of the economy will influence their holiday purchases in 2016, the 12 percent saying it will have a “significant impact” is down from recent years (14 percent in 2015, 19 percent in 2014).

Retailers with online purchase channels stand to gain, as consumers plan on shopping more through online channels this year, NPD said. On average, shoppers plan on doing 38 percent of their holiday shopping online, up from 33 percent last year and 29 percent in 2014.

“Consumer response is suggesting growth across retail channels, despite the growth and dominance of online shopping, which points to a sense of optimism,” said Cohen. “The lack of stand-out, must-have products this holiday season is benefiting the categories that are delivering on basic consumer wants, but marketers need to find new ways to engage and excite holiday shoppers to drive significant growth.”

Two in 10 consumers have already started their holiday shopping. Early shoppers are more likely to say they comparison shop before they buy gifts (45 percent versus 30 percent of late shoppers), and that they plan on buying all their holiday gifts on sale (38 percent vs. 21 percent of late shoppers).

The online survey was fielded in September among a U.S. representative sample of NPD online consumer panel members. The survey was completed by 3,499 individuals aged 18 and older.

Allison ZiskoAllison Zisko | Managing Editor/Tabletop Editor
azisko@hfnmag.com

After 15 years of covering the tabletop industry, Allison Zisko is still as enthusiastic as ever about the dinnerware, glassware and flatware categories. An in-depth analysis of how the category works intrigues her just as much as the latest fashion trends. As managing editor, Allison oversees the daily e-newsletter and works behind the scenes to help produce the print issue each month. She also directs HFN’s housewares coverage and covers the cutlery category. An avid reader, Allison is eager to talk to anyone and everyone about the latest book they are reading.

Videos

Current Issue

  • HFN May digital issue

    HFN's DIGITAL EDITION

    May 2017


    COVER STORY: HFN Turns 90

    We commemorate HFN's 90th anniversary by paying tribute to the iconic retailer and supplier brands--and the people--that have helped the industry flourish, then and now.


    ALSO IN THIS ISSUE:

    • Up & Coming Leaders - The home industry is in capable and visionary hands as this year’s 40 Under 40 list attests. Today’s young leaders span all disciplines and varied levels of operation.
    • Omnichannel Retailing - In the Mobile App World, Time is Money