Ready or not, the holiday shopping season is upon us, and new gift and toy survey data shows what consumers are gearing up to purchase in the coming weeks.
Ahead of the Cyber 5 period — the crucial stretch from Thanksgiving through Cyber Monday — the National Retail Federation (NRF) has dropped some insights on what shoppers plan to buy, as well as how they want to pay.
Survey asks what the top gifts and toys will be in 2024
On average, shoppers are set to spend $902 this holiday season, a new record, according to the NRF’s gift and toy survey. Of that, $641 will go toward gifts, while the rest will cover decorations, food and other seasonal purchases.
Clothing continues to dominate as the most popular gift category this holiday season, with 54% of shoppers planning to gift apparel, according to NRF’s latest gifting survey of over 8,000 adults conducted with Prosper Insights & Analytics.
Gift cards take the second spot at 44%, while 36% of shoppers are going for toys, with perennial favorites like Lego and Barbie leading the pack. Rounding out the top five categories are books, video games, and other media (31%), followed by food and candy (30%).
The numbers closely mirror last year’s trends, when clothing led the pack at 56%, followed by gift cards (44%), toys (37%), books, video games, and other media (31%), and food and candy (29%).
How shoppers find holiday gifts
When it comes to finding gift inspiration, the internet remains king, with 44% of shoppers turning to online searches for ideas, per the NRF’s survey. Friends and family take second place at 36%, followed by in-store browsing (30%) and wish lists (26%).
Social media is also making waves among gift-givers. Younger shoppers, in particular, are turning to social media for gift inspiration. Shoppers aged 18 to 24 are increasingly finding ideas on platforms like TikTok (28%) and Instagram (27%), according to Phil Rist, executive vice president of strategy at Prosper Insights & Analytics.
“These shoppers are also more likely than any other age group to purchase jewelry, with 30% planning to gift these items,” he said in a statement.
Toys topping this year’s holiday survey
When it comes to the season’s hottest toys, classics are holding strong, according to the NRF.
For adults shopping for children, Lego, Hot Wheels, cars, video games and PlayStation are among the top five picks for boys. Meanwhile, Barbie, dolls, Lego, makeup and beauty products, and Disney-themed items lead the list for girls.
Pop culture continues to shape toy trends, with Spider-Man and Barbie-themed products staying at the top of wish lists. Disney merchandise has also made a strong return, cementing its spot among the top choices for girls this year.
Gift cards and preferred payment methods
Gift cards remain a go-to gift option, with total spending expected to reach $28.6 billion this year, just shy of last year’s $29.3 billion, according to the NRF. Shoppers plan to purchase an average of three to four gift cards, spending around $51.18 per card, or $170.48 per person.
Restaurants lead the pack, with 30% of gift cards being purchased for dining, followed by department stores (25%), bank-issued cards (25%) and coffee shops (22%).
Payment methods are evolving as well. While 44% of shoppers plan to use debit cards, 39% will rely on credit. Digital wallets are gaining traction, with 57% of shoppers planning to use platforms like PayPal (30%), Apple Pay (15%), and Cash App (14%) during their holiday purchases.
The survey also found that generosity will be in full swing this holiday season, with 66% of shoppers planning to give back through at least one charitable activity like donating money or goods.
Holiday spending predicted to break records
The NRF is also forecasting a record-breaking holiday season, with spending expected to grow 2.5% to 3.5% over 2023. That translates to $979.5 billion to $989 billion in total holiday sales this November and December, up from $955.6 billion last year, according to another annual survey from the NRF and Prosper Insights & Analytics.
Online shopping is expected to drive much of this growth, with non-store sales projected to rise 8% to 9%, reaching as high as $297.9 billion. By comparison, online sales saw a 10.7% jump last year, totaling $273.3 billion.
“The economy remains fundamentally healthy and continues to maintain its momentum heading into the final months of the year,” NRF president and CEO Matthew Shay said in a statement. “The winter holidays are an important tradition to American families, and their capacity to spend will continue to be supported by a strong job market and wage growth.”
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