The latest survey on consumer holiday spending intentions was again good news for retailers, as The NPD Group’s 2016 “Holiday Purchase Intentions Survey” found that shoppers would spend 3% more this year than 2015.
In the survey, 14% of consumers said they plan to spend more than they did during last year’s holiday season with 17% saying they would spend less— virtually unchanged from 2015 results.
Consumers are less concerned about the economy dampening the holiday season. Only 12% of survey respondents said the current state of the economy would have a significant impact, a figure that is down 2% from 2015 and 7% from 2014.
“All signs point to a holiday retail season that will outperform last year’s,” said Marshal Cohen, chief industry analyst, The NPD Group. “The unvarying holiday spending intentions expressed by consumers are a sign that even this year’s intense election cycle has done little to dampen consumer confidence going into the holiday season, which we forecast to grow moderately.”
Consumer shopping patterns also continue to evolve, and more shoppers will turn to e-commerce outlets this year, the NPD survey found. On average, survey respondents plan on doing 38% of their holiday shopping online, up from 33% in 2015 and 29% in 2014.
Practicality appears to be the big trend with gift giving, as two-in-three respondents said they plan to buy clothing and accessories as holiday gifts this year. In addition, 28% of respondents said they would likely buy a home products item as a gift, up 7% from 2015.
“The lack of stand-out, must-have products this holiday season is benefiting the categories that are delivering on basic consumer wants, but marketers need to find new ways to engage and excite holiday shoppers to drive significant growth,” said Cohen.
The NPD survey was fielded in September and was completed by 3,499 respondents aged 18 and over.