By Joan Verdon, Senior Contributor
October 5, 2022
Source: CNBC
Photo Source: Unsplash, Nathan Lemon
Consumers are trimming their gift lists and shifting their spending plans due to inflation. Inflation is the top concern of holiday shoppers this year, and high prices are causing consumers to recalculate how much they can spend on gifts, and who they will buy gifts for, according to a holiday forecast released today by professional services firm KPMG. Eighty-five percent of consumers surveyed for the KPMG report described themselves as somewhat, moderately, or extremely concerned about inflation. Consumers said they expect to spend more this holiday season than last year, but that they were likely to purchase gifts for fewer people, and to shift their spending to less-expensive gift categories, and budget-friendly stores. “The consumer has moved behaviorally in how they’re reacting to inflation,” said Matt Kramer, KPMG Consumer and Retail National Sector Leader. “Now it’s about affordability and value for the consumer. They’re clearly pivoting categories to more essentials,” he said. “Grocery, automotive, personal care, prescriptions are the essential staples that they know that they’re going to have to spend more on, and that contracts their remaining budget for non-essentials,” Kramer said.
It's important for consumers to be creative during the holiday season to get the biggest bang for their buck, which is why DIY, craft and maker projects, Shidonna Raven Patterns & Publications, predicts will be a huge game changer and money saver for those looking to met a budget and make it through the recession.
Other findings from the report are:
Consumers said they plan to spend an average of $1,072 on the holidays this year, or 6% more than last year.
Gift cards and gift certificates, and apparel items were the top gift items consumers expect to buy.
More shoppers - 40% versus 32% - are planning to wait until November to start their shopping this year, as shopping is expected to stretch out longer into December this year as consumers wait for the best deals.
How else can you save this holiday season? Who is on your Holiday list? What other DIY project ideas do you have?
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