As the festive season nears, U.S. shoppers are poised to break spending records, demonstrating a robust blend of online and in-store purchasing. A new report from PricewaterhouseCoopers (PwC) predicts holiday spending will reach an average of $1,638 per person. This represents a significant 7% increase from last year, showing strong consumer confidence despite widespread concerns about inflation and personal finances.
In-Store Shopping Makes a Notable Comeback
While online shopping continues its growth, traditional brick-and-mortar stores are seeing a welcome resurgence. Data from PwC indicates that 45% of consumers are planning to shop in-store this holiday season, a 2% rise from the previous year and the highest figure since 2019.
There’s a renewed excitement around major shopping events like Black Friday. This year, 22% of shoppers plan to visit physical stores the day after Thanksgiving, marking a 3% increase from 2023. This is the first time participation has risen since 2018, signaling a partial return to pre-pandemic shopping habits.
According to Kelly Pedersen, PwC’s global retail leader, one key driver for this shift is consumer anxiety over online delivery times. Shoppers are increasingly seeking the immediate gratification and certainty that only in-person shopping can offer, which could lead to a “pretty big boon” for physical retailers.
Online Spending Still Reigns Supreme
Despite the renewed interest in physical retail, online shopping remains the dominant force. Adobe Analytics forecasts that U.S. consumers are set to spend a record-breaking $240.8 billion online this holiday season. This is an impressive 8.4% jump from the $221.8 billion spent in 2023.
Several key trends are fueling this massive digital growth:
- Early Bird Shoppers: Consumers are starting their holiday shopping earlier than ever to find the best deals and avoid last-minute stress.
- Mobile is King: For the first time, more than half of all online purchases (52%) will be made on smartphones, highlighting the importance of mobile-friendly shopping experiences.
- Discounts Drive Decisions: Aggressive discounting is a major factor influencing consumer behavior, encouraging shoppers to buy items that were previously out of their price range.
Vivek Pandya of Adobe Digital Insights noted that these deep discounts are causing “material changes in shopping behavior” and helping to propel growth for retailers across the country.
The Psychology Behind Holiday Spending
Shopping is more than just a transaction; it’s an experience. Tamara Masters, a marketing professor, explains that consumers are not just buying goods, but also “buying the benefit” associated with them. This emotional connection is a powerful driver during the holidays.
Successful retailers are tapping into this by creating memorable, experiential environments. By leveraging nostalgia and festive atmospheres, they can make shopping trips feel more fulfilling and emotionally rewarding. This is a key advantage for physical stores, as they can create a sensory experience that online shopping cannot fully replicate.
Retailers Innovate to Capture Shopper Attention
Both online and offline retailers are getting creative to attract customers. In Salt Lake City, the Downtown Alliance is enhancing the in-person experience with attractions like the GLOW light sculpture installation and live events. These efforts helped boost downtown traffic by 11% last year, drawing visitors from across the region.
Meanwhile, online giants like Amazon are working to bring the magic of in-store shopping to the digital world. The new Amazon Virtual Holiday Shop aims to bridge this gap by offering an immersive 3D environment where customers can browse gifts in a festive setting.
| Feature | Description |
|---|---|
| 3D Store Environment | Allows shoppers to navigate a realistic, decorated virtual store. |
| Brand Showrooms | Features dedicated virtual spaces for major brands like Lego and Disney. |
| Interactive Elements | Provides a dynamic and engaging way to explore and learn about products. |
These innovations show how retailers are adapting to meet the evolving expectations of holiday shoppers, whether they prefer to click through a virtual aisle or walk through a beautifully decorated store.
Frequently Asked Questions
How much is the average person expected to spend this holiday season?
According to a report by PwC, the average U.S. shopper is expected to spend $1,638 this holiday season, which is a 7% increase compared to the previous year.
Is in-store shopping becoming more popular again?
Yes, in-store shopping is seeing a resurgence. About 45% of consumers plan to shop in physical stores, the highest level since 2019. Black Friday in-store traffic is also expected to see its first increase since 2018.
What are the biggest trends in online holiday shopping this year?
The main online trends include consumers starting their shopping earlier, a record number of purchases being made on smartphones (over 52%), and heavy discounts significantly influencing buying decisions.
Why are shoppers returning to physical stores?
Many shoppers are returning to stores due to concerns about timely online deliveries and a desire for the immediate assurance of having a product in hand. Retailers are also enhancing the in-store experience with festive decorations and events to attract more visitors.
