Americans tighten their belts for the holiday season? Daily necessities become the dark horse category

Inflation and the cost of living crisis are limiting U.S. consumer spending during the upcoming holiday sales season, according to an online survey of 3,599 adult respondents by NPD Group.

U.S. consumers plan to spend an average of $760 during the holiday shopping season in 2022. That's up from $691 in 2020 but down from $785 in 2021.

Consumer electronics and entertainment products are both among the top 10 coveted consumer categories, with entertainment products ranking fourth with an average personal consumption expenditure of $178. Consumer electronics purchase demand ranks first, with an average expenditure of $765.

The survey data also shows that most respondents will start their holiday shopping during Thanksgiving weekend, and Black Friday (November 25) is still the best time to find the best deals, followed by early November, such as around Amazon's just-concluded Prime Day.

NPD said that despite rising prices for nearly all daily expenses, grocery spending remains a major spending category. In the first nine months of 2022, sales of daily necessities were only 2% lower than in 2021, the peak period of demand, and 17% higher than in 2019.

“Throughout 2022, we have witnessed an extension of the traditional retail shopping period and a flattening of typical retail sales peaks,” Marshal Cohen, chief industry advisor for retail at NPD Group, wrote in the report. “Consumers’ changing shopping mentality during the pandemic, coupled with rising prices, has led people to spend cautiously and adopt a necessities-first spending strategy, focusing on necessities.”

Editor ✎Estella/

Disclaimer: This article is copyrighted and may not be reproduced without permission.