Holiday shoppers predicted to repeat 2019 level of spending

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.”