Deloitte: 2022 Holiday Retail Survey Report

For 37 years, the annual holiday survey has provided insight into shoppers’ spending sentiment as they prepare to socialize, gift and travel. The 2022 holiday season may be defined by the continued impact of inflation on the U.S. economy and by consumers’ changing priorities as they find ways to celebrate the holidays.

Financial conditions have taken a hit, with 37% of U.S. households saying they are worse off financially than last year and nearly three-quarters (73%) expecting goods to cost more this year.

Despite the economic pressures, there are bright spots this season. The holiday spirit (and spending) is alive and well: Overall spending in 2022 is expected to match 2021 levels, with each consumer spending $1,455. Another encouraging story comes from lower-income groups, where stability from wage growth has shoppers feeling more hopeful and getting back to expected spending levels.

Still, consumers are feeling the pinch of rising prices. Their overall spending may be the same, but how they spend it has changed. Non-gift purchases are being limited in search of smarter ways to keep up the tradition of gift-giving and socializing. Consumers also plan to buy fewer gifts while shifting more of their budget to gift cards. As a result, purchases will be done in shorter windows.

Not only are consumers completing their shopping quickly, they are also starting earlier. After two years of holiday management issues such as out-of-stocks and extended delivery times, shoppers are no longer taking chances. In fact, 38% of respondents plan to start shopping earlier than last year, and a quarter of their holiday budget could be spent by the end of October.

As in previous years, online shopping is expected to dominate this season, but there is a silver lining for brick-and-mortar stores. Shoppers are beginning to warm up to in-person shopping, with 35% of budgets spent in-store, compared to a low of 28% in 2020.