Holiday spending might be a little less extravagant and early this year, according to new data from Coresight Research.
In its latest weekly U.S. consumer survey that gleans insights on shopper behavior and sentiment amid the coronavirus crisis, the firm found that 48 percent of shoppers said they expect to spend less for the holiday season than last year, and the top three product categories that consumers plan to cut their holiday spending are seasonal decorations, clothing and accessories, and electronics.
“Among those who expect to spend less for the holiday season, the top categories to spend less on are food services. Almost half said they will spend less on dining out or going to bars/nightclubs, followed by more than two-fifths who plan to cut their spending on traveling to visit other people. This indicates that service industries — including food service, entertainment and travel — are likely to be hit the hardest during the holiday season,” authors of the report said.
But when, exactly, are consumers planning on buying gifts? Consumers’ holiday spending will likely be pulled forward this year, the firm explained. “One-third of holiday shoppers expect to do their shopping on Amazon Prime Day, which is expected to be in October; and some 28 percent said they will start their holiday shopping earlier than usual.”
And as states continue a pattern of reclosing, unsurprisingly, avoidance rates are up. “Shopping centers/malls remain the most-avoided places, with more than three-fifths of respondents reporting that they are currently avoiding these locations,” while the “proportion of respondents that are currently avoiding shops in general is on a consistent upward trend.”
Businesses such as gyms and sporting centers saw a nine-percentage point jump in avoidance rate, which was the highest increase among all options, the firm said.
“We saw the proportion of consumers avoiding any kind of public place spike to 85 percent this week, from 79 percent last week — reaching the highest level over the past couple of weeks, reflecting consumers’ heightened concern about the resurgence of coronavirus cases in some states.”
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