Holiday Shopping Season Starts Early as Consumers Expect Price Increases

The holiday shopping season reportedly got off to an early start as consumers sought to buy gifts before the price increases that they expected took effect.

CNBC reported Friday (Sept. 12) that a Costco store in New Jersey is already displaying some seasonal items and that some of those items are close to being sold out.

Consumers began their holiday shopping as early as July, aiming to avoid higher prices and take advantage of sales events like Amazon Prime Day, the report said, citing Deloitte Consulting Principal Brian McCarthy.

Bankrate said in July that 49% of consumers had already begun their holiday shopping or planned to do so before Oct. 31, according to the report. Bankrate also found that 41% of consumers believe gifts may be more expensive this year.

Ted Rossman, senior industry analyst at Bankrate, said in a Monday (Sept. 8) press release: “While some consumers shake their heads that holiday shopping seems to start earlier each year, the early start gives you more time to spread out your cash flow and find the best deals.”

PWC said in a Sept. 3 press release that almost 80% of holiday gift budgets will have been spent by the end of Cyber Monday, with 39% of those budgets being spent during the five days between Thanksgiving and Cyber Monday.

According to the CNBC report, in their forecasts for the entire holiday shopping season, Deloitte expects the growth in holiday sales to slow to 3% this year after increasing 4.2% last year, Bankrate found that 30% of consumers expect to spend less this year than they did last year, and PwC predicts that consumers will spend 5% less on holiday gifts, travel and entertainment than they did last year.

Natalie Martini, vice chair, Deloitte, and U.S. retail and consumer products leader, said in a Wednesday (Sept. 10) press release: “Retailers who remain focused on delivering value throughout the season have a prime opportunity to drive growth during what continues to be a critical time for their businesses.”

It was reported in August that retailers’ forecasts for the holiday shopping season are split, with some concerned about rising costs, declining consumer sentiment and slowing consumer spending.