The Covid-19 pandemic and the recession that accompanied it are not putting a damper on this year”™s holiday shopping season, according to a forecast released by The Conference Board.
The nonprofit business group predicts that households will be spending an average of roughly $673 this holiday season on gifts, nearly identical to last year”™s $675 spending average.
One major difference from 2019 involves where the gifts are being purchased ”“ 52% of consumers said they plan to buy at least half of their items online this year vs. 42% who relied on the e-commerce sites one year ago.
Fewer consumers polled by The Conference Board expected to buy at least half of their gifts at a discount ”“ 30%, compared with 35% last year. Toys and games are expected to be more popular as gifts this year, which the group attributed to families staying at home as a result of the pandemic, while jewelry sales are expected to be lower this holiday season.
“Consumers are entering the holidays with intentions to spend about the same as last year,” said Lynn Franco, senior director of economic indicators at The Conference Board.
“That is relatively good news at a time when consumer confidence remains below pre-pandemic levels, unemployment is elevated, and the economy appears to be losing momentum heading into the final stretch of 2020. With Covid-19 cases continuing to rise, retailers should prepare for a surge in online traffic and purchases.”
