Economic downturn affects holiday shopping, more than half of Americans say they will buy fewer gifts

According to a new survey, cost of living pressures are affecting not only what consumers buy, but also how they shop. This year, many Americans plan to cut back on holiday spending.

Inmar Intelligence’s latest survey of 1,000 U.S. consumers, “2023 Holiday Trends in Grocery and Daily Spending,” showed that 49% of respondents were pessimistic about the rising cost of living, and 48% were negative about the economic outlook.

Nearly three-quarters (73.3%) of respondents expect they will cut back on holiday spending, with respondents citing financial constraints (54%) and gift shopping (44%) as the most stressful aspects of the holiday season.

71% of respondents said they will actively search for coupons or promotional codes to make their holiday purchases. More than half (53%) of respondents said they will buy fewer gifts this year in response to economic conditions, and 81% said they will explore other more affordable gift options.

Inmar Intelligence also studied holiday spending trends and found differences in spending by age group. Overall, consumers aged 18 to 44 will spend more on holiday gifts and shopping this year than last year, but consumers aged 45 and over will spend the same or less than last year.

Holiday Payment and Shopping Technology Usage Trends

Buy Now Pay Later usage increases: Nearly four in ten (38.3%) respondents said they would use buy now, pay later (BNPL) to manage holiday spending, up 65% from 23.2% last year. Millennials (aged 25-35) were the most likely to use buy now, pay later, up 88% year-on-year, jumping from 29.8% to 56.29%.

Omnichannel shopping is on the rise: Six in ten respondents will purchase holiday items through an omnichannel experience (online and in-store).

Loyalty subscription programs are popular: 50% of respondents subscribe to a retailer's membership loyalty program, which provides subscribers with exclusive coupons or rewards during the holiday season. Inmar Intelligence believes this highlights the importance of educating customers about loyalty programs and their benefits.

"Influencers" have a great influence: 61% of respondents said their holiday shopping inspiration came from social influencers.

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