This Holiday Season Has Consumer Spending at an All Time High

The holiday season is here, and consumer spending has skyrocketed. With companies like Target and Amazon offering free shipping, it’s hard for buyers to say no. It is predicted that retail sales in the US will be up to $1 trillion by December 31. Consumers expect that they will spend up to $1,250 on gifts this year, which is 5 percent higher than spending last year.

With shopping online becoming more common, Salesforce says that 46 percent of orders will be done from smartphones. Most of these purchases will take place during Black Friday, and Cyber Monday. Consumers that shop both, online and in store, are expected to spend over $1,000 more than those who do one or the other. Due to the increase in holiday spending, it is necessary for retailers to hire temporary workers. 585,000 to 650,000 hires will be made in the retail department, according to NRF.  

The wish-lists are consisting of gift cards, clothing, media, home decor, and so much more. 60 percent of consumer that were polled said they wanted a gift card, 53 percent said they preferred clothing, 37 percent said they wanted books and other media, 29 percent said electronic gadgets and accessories and 23 percent wanted home furnishings.

Spending has become much easier, due to smartphones. Aside from being able to order everything from the palm of your hand, you can make cardless payments as well. It is predicted that 30% of customers are planning to use these forms of payments when going shopping, according to PwC. However, the consumers that are 65 years of age and older are expected to continue using credit cards to make their payments.

When it comes to shopping, consumers are more likely to participate when there is a sale. In fact, this is the most important factor of shopping for 71 percent of consumers. Who could blame them; It’s hard to pass up a good deal!