NRF: Consumers Ages 35-44 to Spend The Most During Holiday Season

This article contains excerpts from a press release issued on October 24, 2019 by the National Retail Federation.

October 24, 2019 | Consumers are expected to spend an average of $1,047.83 this holiday season, up 4 percent from the $1,007.24 they said they would spend last year, according to an annual survey conducted by the National Retail Federation (NRF) and Prosper Insights & Analytics.

Consumers will spend in three main categories during the holidays – gifts totaling $658.55; non-gift holiday items such as food, decorations, flowers, and greeting cards totaling $227.26; and other non-gift purchases that take advantage of holiday deals and promotions totaling $162.02.

More than half of shoppers between the ages of 25 and 34 (52 percent) plan to purchase gifts for co-workers, and 82 percent of those between 18 and 24 plan to purchase gifts for their friends. But while younger consumers are helping drive the overall holiday spending increase, it’s shoppers between the ages of 35 and 44 who are expected to be the biggest spenders, with plans to spend an average of $1,158.63.

"Consumers are in good financial shape and willing to spend a little more on gifts for the special people in their lives this holiday season," NRF president and CEO Matthew Shay said. "Retailers are fully prepared to meet the needs of holiday shoppers looking for that perfect mix of sales, quality and selection."

Retailers are already taking the necessary steps to ensure products are state-side before the fourth wave of tariffs on Chinese goods–including toys–takes effect on December 15. According to the NRF report, retailers are expected to import near-record volumes of merchandise.

Holiday shoppers will also spread their shopping across multiple channels and types of stores. More than half (56 percent) will shop online, while 53 percent will shop in department stores, 51 percent will go to discount stores, 44 percent to grocery stores, 34 percent to clothing stores, and 23 percent to electronics stores.

Among online shoppers, 92 percent plan to take advantage of free shipping and 48 percent will use buy online, pick-up in store, or ship to store services. Sixteen percent plan to use same-day delivery, which has doubled since 2015.

Forty-three percent of holiday shoppers are waiting until at least November to begin browsing and buying items for the season, according to the NRF. However, 39 percent said they plan to start in October and 18 percent said they are waiting until December.

The survey follows NRF’s forecast that holiday retail sales in November and December will increase between 3.8 and 4.2 percent over 2018, amounting to total sales between $727.9 billion and $730.7 billion for the season. The forecast compares with an average annual increase of 3.7 percent over the past five years.

The National Retail Federation is the world’s largest retail trade association. Based in Washington, D.C., the NRF represents discount and department stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and internet retailers from the United States and more than 45 countries.