Accenture: 2023 Holiday Shopping Survey

As retailers prepare for the holiday season, persistent inflation, high interest rates and income uncertainty are prompting many consumers to cut back on spending, make trade-offs and get more creative about how, where and what they spend their money, according to Accenture’s annual Holiday Shopping Survey.

The survey of more than 1,500 U.S. consumers found that when considering their finances ahead of the holidays, 60% have already or are planning to cut back on gifts for close family and friends. Meanwhile, more than half of consumers (52%) have agreed or plan to agree not to exchange gifts with other adults.

Financial stress can influence purchasing decisions

Less than one-fifth of consumers said they were optimistic about their financial situation heading into the holiday season. The survey showed that consumers plan to spend $591 this quarter, an average of 5% less than last year. Consumers over 70 expect to spend $673, the highest among all age groups, followed closely by baby boomers (59-69 years old), who expect to spend $667.

Another interesting change retailers may see this season is that consumers are reporting they plan to do their holiday shopping from October to December, a possible reversal of the long holiday shopping season.

Creative and Practical Ways to Shop for the Holidays

The survey also revealed that while price (78%) and value for money (60%) are the most important factors in determining how consumers shop and what they spend this season, quality remains important to more than half of consumers (50%).

Many consumers appear to be exploring creative yet practical ways to stretch their budgets. For example, some consumers say they are willing to compromise on convenience if it means saving money; 53% are choosing to pick up their purchases from the store rather than have them delivered. Additionally, 39% of consumers intend to make conscious purchases, such as PC games, that they can enjoy year-round. This number grows to 47% among younger Millennials (ages 25-31) and 45% among older Millennials (ages 32-39).