Grocery stores remain staple destination for holiday shopping

Consumers plan to spend more for the winter holidays this year, and grocery stores will be one of their top shopping destinations, according the National Retail Federation (NRF).

On average, shoppers expect to spend $875 on gifts, decorations, food and other key seasonal items for the 2023 winter holidays, up $42, or 5%, from the 2022 average spend, based on NRF’s latest consumer survey conducted by Prosper Insights & Analytics. That’s over the average spend of $866 since 2018 and marks a significant rebound from 2022, when the dollar amount plunged to $833 from $879 in 2021 and levels of $880 in 2020 and $886 in pre-pandemic 2019.

Grocery stores will account for a sizable share of customer shopping destinations. Of 8,103 consumers surveyed, 44% plan to shop at stores and supermarkets, just behind department stores (49%) and discount stores (48%) among the brick-and-mortar retailers and followed by apparel stores (32%), small merchants (24%), electronics stores (20%), crafts stores (16%) and outlet stores (14%).

From the National Retail Federation

But consumers’ rising predilection for e-commerce stands to continue. Of those polled in NRF’s study, 58% said they plan to do winter holiday shopping online this year.

Almost all U.S. adults (92%) said they plan to celebrate events such as Christmas, Hanukkah or Kwanzaa this year, roughly the same level as last year, NRF noted.

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“The winter holidays are an important tradition to many American families, and shoppers are prioritizing their holiday purchases for the people most important to them,” NRF President and CEO Matthew Shay said in a statement. “Retailers have been preparing for months to ensure their inventories will meet demand, while at the same time helping consumers maximize their budgets with shopping events and discounts running throughout the extended holiday shopping season.”

Indeed, as in recent years, 43% of holiday shoppers polled reported that generally start their holiday shopping before November. The top reasons cited for shopping early in the seasons included spreading out their budget (60%), avoiding the pressure of last-minute shopping (46%) and dodging crowds (45%). Yet even with an early start, 62% indicated they likely won’t finish until December.   

From the National Retail Federation

Efforts to shop early to take advantage of savings reflect the ways consumers aim to make the most of their holiday budgets, the NRF/Prosper research found. When shopping for gifts, 62% of respondents said sales and promotions are even more important to them this year than last year. Over a third (36%) reported they plan to cut back in other areas to cover the cost of holiday items, and 30% said they’re buying gifts for fewer people. Another 27% expect to buy less for themselves.

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“However, early sales may sway consumers to shop even earlier,” according to Phil Rist, executive vice president of strategy at Prosper. “This year, seven in 10 holiday shoppers say they are considering taking advantage of October sales events to pick up holiday gifts, decor and other items on their list.”

Of the $875 consumers plan to spend, about $620 will be spent on gifts and another $255 is earmarked seasonal items like decorations, candy or food. Gift cards continue to be the most popular gift, with 55% of holiday shoppers reporting that they would like to receive them this year. That was followed by apparel or accessories (49%); books, video games or other media (28%); and personal care or beauty items (25%). Also, 23% of holiday shoppers said they plan to give a gift of experience, in line with last year and up from 19% in 2021.