Economic uncertainty has not put a damper on the holiday shopping season. A newly released 2024 Deloitte holiday retail survey finds that consumers are planning to spend an average of $1,778 this season, up 8 percent compared with 2023.

Experts say the increased spending is being driven by an improved economic outlook, which has created a shift in how consumers are spending their money this year. Spending on items such as experiences is up 16 percent this year, compared with 2023, and spending on non-gifts, decor and party accessories is up 9 percent. 

Seven in 10 respondents said they had made plans to cut spending on self-gifting and are expecting to shop at least one promotional event. 

Shoppers are also looking for a bargain, with 62 percent reporting they will shift brands if a preferred brand is too expensive, and 48 percent say they will be shopping at more affordable retailers. 

The company stated that in this year's study, there is a greater sense of optimism and willingness to spend, however, consumers remain focused on finding the best deals to maximize their budgets, even if it means choosing value over loyalty. Meanwhile, spending on experiences, including travel, hosting gatherings, or attending holiday concerts and activities, is on the rise, which the company says underscores shifting priorities and new opportunities for retailers. 

"This holiday season, consumers plan to prioritize celebrating with friends and family through experiences. To do so, they are finding ways to make their dollars go further on the gifts they want to give and the events they want to experience,” said Brian McCarthy, principal at Deloitte Consulting LLP. “With consumers leaning more into experiences and continuing to search for value, retailers have the opportunity to attract shoppers and better connect with customers by focusing on loyalty programs and offering unique incentives."

Consumer buying habits are shifting slightly this year, with more shoppers planning to spend up to 9 percent more on gifts like food and beverage products this year.

Seven in 10 shoppers are expecting to see higher prices this year, prompting many to look for better deals. Approximately 71 percent of respondents said they would be using online retailers only for their shopping, while 55 percent said they would be shopping with mass merchants. 

Multichannel shopping continues to grow in popularity, especially among younger buyers, with 48 percent of respondents reporting they plan to shop on smartphones, while 13 percent plan to purchase on social media. More specifically, Gen Z is embracing these channels more, according to Deloitte, with 58 percent planning to shop on their smartphone and 20 percent planning to buy gifts on social media.

Stephen Rogers, managing director at Deloitte Insights Consumer Industry Center, Deloitte Services LP, noted that despite expectations of higher prices, all income groups are optimistic that the economy will improve next year. They are willing to spend on delivering holiday cheer. 

“Experiences are expected to fuel holiday spending. To fund holiday experiences, value-seeking consumers plan to hunt for deals from stores and brands and trade down to stretch their wallets, keeping spending on overall retail categories flat year-over-year,” he said.