September 29, 2022 – NPD – Increased negativity about the economy and their own personal finances is causing 29% of U.S. consumers to think about spending less this holiday season, according to a recent holiday purchase intentions consumer survey from The NPD Group, which recently merged with Information Resources, Inc. (IRI). While the majority of shoppers plan on spending the same or more than last year, the share of consumers who plan to spend less this year increased over last year. As a result, spending on par with 2021 levels is expected during the traditional November and December holiday shopping season, with the potential of 0.5% to 2.5% growth when the season is expanded to include October and January.

“Consumers are ready to get out and celebrate over the 2022 holiday season, but last year’s optimism has taken a beating as financial concerns have them feeling a bit more grinchy this year,” said Marshal Cohen, chief retail industry advisor for NPD. “Despite economic challenges, consumers still have just as many friends and family members to shop for during the holidays, they will just be spending differently.” 

“Early season promotional events will help consumers to spread out their spending, while also setting the stage for a more spread-out holiday shopping season,” Cohen said. “Navigating this year’s fluctuating shopping dynamics will require patience and persistence with the consumer, and a perspective on the holiday season that extends beyond the traditional retail definition.”

Read more at NPD.