Online holiday spending will rise 7% this holiday season according to the National Retail Federation (NRF), which released its numbers on November 2, 2023.
The NRF expects holiday total spending (online and offline) to grow between 3% – 4% during November and December.
“Consumers remain in the driver’s seat, and are resilient despite headwinds of inflation, higher gas prices, stringent credit conditions and elevated interest rates,” said NRF Chief Economist Jack Kleinhenz.
NRF President and CEO Matthew Shay said it was not surprising to see holiday sales growth returning to pre-pandemic levels. Despite a slower growth rate compared with the past three years, when trillions of dollars of stimulus led to unprecedented rates of retail spending during the pandemic, this year’s holiday spending is consistent with the average annual holiday increase of 3.6% from 2010 to 2019, according to Thursday’s report.
Shay said there has been an evolution in the way consumers are allocating their dollars, yet consumer spending has kept economic expansion on a path forward. “We know the winter holidays are an important tradition for American families and spending decisions are going to be done in a way that bring the most value for themselves and their loved ones.”
Kleinhenz said, “We expect spending to continue through the end of the year on a range of items and experiences, but at a slower pace. Solid job and wage growth will be contributing factors this holiday season, and consumers will be looking for deals and discounts to stretch their dollars.”
