By Nathalie Voit
About three in four consumers surveyed by 4Over expect price increases for items this upcoming holiday season.
The culprit? The country’s record-high inflation rate. According to the survey results, 59% of consumers are worried about buying gifts for loved ones heading into the holidays due to the high cost of living. In anticipation of even more price increases, 27% of Americans polled say they plan to start holiday shopping earlier this year.
The findings show around three in four respondents (73%) are more cautious about their spending on gifts this year compared to last year.
As holiday budgets get tighter, almost half (47%) of those surveyed say paying full price for something is a deal breaker. Most consumers (56%) plan to buy gifts during big savings events like Labor Day and Black Friday.
Americans plan to spend $575.64 on average in 2022, or about $35 less compared to last year. For reference, Americans spent $611.19 on gifts in 2021.
The average consumer will buy gifts for eight people during the holidays, with most shopping for parents (67%), a significant other (56%), siblings (48%), kids (45%), and friends (37%).
Twenty-three percent will buy gifts for extended family, 16% for pets, 15% for a partner or spouse’s family, and just 6% for coworkers.
Twelve percent have already started their holiday shopping. Among those who have gotten a head start, 16% say they did because of budget concerns. Eleven percent cited inflation.
For those who have yet to buy gifts, 17% will start in October, 31% in November, and 13% in December. About one in four (23%) will buy gifts as soon as they find them.
Over half of Americans (53%) will pay for holiday purchases with a credit card. More than one in three (35%) will use their points or rewards programs to buy gifts. Twenty-nine percent will draw from their savings, 24% will use gift cards they already own, and 15% will use Buy Now, Pay Later services to cover holiday costs. Six percent plan to regift items they already own.
About one in four consumers (24%) have already started saving for the holidays. Fourteen percent plan to start saving in August, 11% in September, 9% in October, and 3% in November.
Forty-three percent of Americans plan to trim back on other expenses to pay for gifts. Over one in three (36%) will cut down on dining out, 27% will scale back on activities like concert-going or going to the movies, 20% will buy fewer clothes, 13% will travel less, and 12% will trim back on beauty appointments like manicures or haircuts.
Consumers also plan to save money by scoring free shipping. According to 4Over, 70% of those surveyed usually add other items to their cart to reach a free shipping threshold.
“It can be stressful thinking ahead to the most expensive time of the year,” 4Over said in the report. “It’s a good time to start planning, saving, and budgeting for gifts as inflation continues to climb. Make the most of upcoming sales, evaluate where you can cut back in your budget, and pay attention to shipping slowdowns, and you’ll be well prepared for the upcoming holiday season.”
