Consumers are in the giving mood this holiday season, according to a new report from the National Retail Federation (NRF), conducted by Proper Insights & Analytics. The report revealed that that consumers are expected to spend an average of $902 per person on gifts, food, decor and seasonal items, an increase of $25 per person compared with 2023. 

“The winter holidays are a treasured time for Americans, and they are prioritizing spending on family this holiday season,” said Katherine Cullen, NRF vice president of industry and consumer insights. “Despite the shorter window of time between Thanksgiving and Christmas, retailers are prepared to meet the needs of consumers by providing holiday shoppers with earlier deals and sales, and by ensuring inventory is available for the most in-demand items this year.”

Experts at the NRF believe the increase in holiday spending is attributed to gifts for family members. Of the $902 shoppers plan to spend, the NRF noted that approximately $641 is on gifts for family, friends, co-workers and more, an increase from $620 spent last year. The remaining $261 will be spent on other seasonal items such as food or candy, decorations, greeting cards and other holiday items, according to the survey.

A resounding 92 percent of respondents said they planned to celebrate winter holidays such as Christmas, Hanukkah or Kwanzaa this year, in line with 2023. Of these, 45 percent of holiday shoppers said they planned to browse and buy items before November, up 40 percent compared with 10 years ago. 

The survey noted that 59 percent of shoppers are planning on getting a head start on shopping for budgetary reasons, while 45 percent said they wanted to avoid the stress of last-minute shopping. Additionally, 42 percent of respondents said they were trying to avoid crowds and get the best deals. Despite the drive to get ahead of shopping this year, 62 percent of respondents said they still didn’t plan on finishing their holiday shopping until December. 

Online shopping remains the most popular mode of making purchases, with 57 percent of consumers planning on making their holiday purchases online. Bricks-and-mortar locations are still the trusted go-to for shoppers, with 46 percent of respondents noting they will be shopping at department stores, while 46 percent said they will be visiting grocery stores and supermarkets. 

“While most consumers will opt to shop at traditional retailers this holiday season, many younger consumers, between the ages of 18 to 24, will also head to thrift stores and resale shops,” said Phil Rist, Prosper executive vice president of strategy. “Secondhand and refurbished gifts appeal to this age group’s desire to save money and be more sustainable.”