Gartner: Only 9% of U.S. consumers plan to increase spending during the 2023 holiday shopping season

According to a Gartner survey, only 9% of consumers plan to spend more this holiday season. A June 2023 survey of 302 consumers showed that 28% of respondents plan to spend less this holiday season, while 63% plan to spend the same this year as last year.

19% of consumers will start shopping in October, 29% will start shopping in November, and only 10% want to wait until December to start shopping. Another 19% of consumers said they shop year-round, up from 16% in 2022.

Gartner predicts that by 2026, 30% of consumers will buy holiday gifts year-round.

Same-day service, not just free shipping

Free shipping is no longer a differentiator, but a consumer expectation. Aside from price, holiday shoppers cite free shipping (45%) as one of the main factors influencing their purchasing decisions. This is followed by value (35%), promotions or offers (33%), gift options (24%), and ratings and reviews (17%) as the top reasons for holiday gift purchases.

While most consumers plan to make the majority of their purchases online this holiday season, 16% say they will shop online more than in-store in 2023, compared to 21% last year. Retailers with physical stores should promote more than just free shipping, as almost one-third of consumers plan to take advantage of commingled, same-day or expedited shipping services for their holiday shopping needs.

Targeting young consumers and competing on ESG processes

Younger consumers are more likely to prioritize companies with a social purpose. 13% of holiday shoppers cite environmental, social and governance (ESG) factors as the most important when choosing a gift. For younger consumers, having a gift that is locally made or from a brand owned by members of historically underrepresented groups is more important than getting expedited shipping.