Consumers plan to spend more this holiday season

According to its annual survey of consumers, the National Retail Federation (NRF) reports that holiday shoppers plan to spend an average of $1,047.83 this holiday season, up 4 percent from the $1,007.24 they said they would spend last year.

“Consumers are in good financial shape and willing to spend a little more on gifts for the special people in their lives this holiday season,” says NRF President and CEO Matthew Shay. “Retailers are fully prepared to meet the needs of holiday shoppers looking for that perfect mix of sales, quality, and selection.”

Consumers will spend in three main categories during the holidays – gifts for family, friends and co-workers, at an average $658.55; non-gift holiday items such as candy and food, decorations, greeting cards, and flowers at $227.26; and other non-gift purchases that take advantage of the deals and promotions throughout the season at $162.02.

7,782 adult consumers were surveyed October 1-10 by the NRF along with Prosper Insights & Analytics. For the 13th year in a row, gift cards remain the most popular items on wish lists, requested by 59 percent of those surveyed. Retailers looking to boost their holiday sales can put a greater emphasis on gift cards in the coming weeks.

More than half of shoppers between the ages of 25 and 34 (52 percent) plan to purchase gifts for co-workers, and 82 percent of those between 18 and 24 plan to purchase gifts for their friends.

“Younger consumers are helping drive the spending increase this year,” says Prosper Insights Executive Vice President of Strategy Phil Rist. “They’re not just spending on their immediate family members, they’re also treating their larger circle of co-workers and friends to gifts.”