Spending on Experiences to Rise This Holiday

RAPAPORT... US consumers will spend more this holiday season as they return to travel and other experiences amid a reopening of the economy, according to a survey by Deloitte.Americans will shell out an average of $1,463 for festive purchases, compared to $1,387 in 2020, the consulting firm noted last week. Consumers with an annual income of $100,000 or more are expected to drive the increase, with their average spend up 15% to $2,624. Meanwhile, those with a yearly pay of under $50,000 said they intended to spend about $536, down 22% from a year ago. Total holiday spending includes retail goods, as well as travel and experiences. Outlay on gifts will rise 3% year on year to $501, while purchases of items other than gifts will slip 2% to $426. Spending on experiences is set to grow 15% to $536."Some consumers expect to incorporate more in-store shopping this year, while others are venturing out to entertain, socialize and travel," Deloitte noted. "As Americans return to experiences, just under half will travel this holiday season, and nearly twice as many will drive as fly."Although many purchasers are moving back to brick-and-mortar shopping this year, they will still spend more online, putting down an average of $440 in-store and $924 on e-commerce sites.The clothing and accessories segment - which includes jewelry - will see the highest holiday spend, up 11% to $304. That category will be followed by electronics, gift cards, and food and beverages. However, shipping challenges will affect spending in those segments, Deloitte explained. Some 75% of shoppers are concerned specific items will run out, especially with regard to electronics, accessories, toys and hobbies. Another 68% believe this will lead to higher prices. Due to those factors, four in 10 of those surveyed will likely start their shopping earlier this year, Deloitte added.Image: Holiday gifts. (Shutterstock)