New Big Village Insights Survey Finds Inflation is Dramatically Influencing Holiday Shopping Behaviors
70% of consumers state that economic impacts are limiting their ability to buy holiday gifts this year
Economic uncertainty and inflation are seriously impacting holiday shopping this season, according to a new survey by Big Village Insights, the research and analytics division of Big Village, a global advertising, technology, and data company. The survey aims to understand consumers’ current sentiments around spending this holiday season and if they are more or less inclined to stretch their budgets. This CARAVAN® Omnibus survey was conducted by Big Village among a sample of 1,008 U.S. adults 18 years of age and older.
The data confirms that this holiday shopping season will be a scaled-back one for many shoppers, with 46% of consumers reporting that they are not willing to spend more this year, even if it means getting the most important items on their list. Additionally, 73% of consumers are prepared to settle for value brands rather than the name brands they prefer due to inflation. 72% of consumers also believe they will need to shop for less people because of inflation.
“Inflation and economic uncertainty are greatly impacting consumers’ plans this holiday shopping season,” said Rich Tomasco, VP of Insights/CARAVAN Surveys at Big Village. “Our survey reveals incredibly conscious consumers who are counting every dollar. It’s critical for retailers to understand just how different this year’s consumer is to past years – and to anticipate a more subdued holiday shopping season.”
The survey also outlines when and what consumers are shopping for this year with 55% of consumers reporting they are less likely to buy a luxury/big-ticket item this year as compared to previous years. Additionally, 59% of consumers had planned to start shopping earlier than in previous years because of rising prices. 61% of consumers are on the hunt for deals and sales, shopping during events such as Amazon’s second round of Prime Days earlier in October.
Apparel will be the hottest category for holiday shopping this season as half of all consumers plan to have that on their shopping list. Gift cards were a close second with 49%, while 45% will be shopping for toys and games this year.
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Additional key findings include:
- 62% of consumers plan to shop for most of their gifts on Black Friday (36%) or Cyber Monday (26%)
- 84% of consumers plan to do at least some of their holiday shopping in-person in physical stores
- 63% of consumers stated they do not plan on doing any curb-side pickup this year
- 37% of consumers plan to spend $400-1,000 this holiday shopping season
- Browsing and shopping online has the greatest influence over consumers’ purchasing decisions for holiday gifts (47%)
- 49% of consumers reported that advertising they see on social media doesn’t have much impact on their purchasing decisions
