Retail Dive: NPD Expects 5% Growth in Holiday Spending

Holiday spending expected to grow 5%

(Image source: Retail Dive)

According to a new report released by The NPD Group, holiday spending will increase by 3% in November and December and 5% if October and early January is taken into account. This surge is fueled by the optimistic view of the pandemic-driven shopping behavior and looser restrictions on social gatherings compared to last year. 

“New optimism, along with underlying uncertainty, are fueling shopping expectations, making this a more complex holiday season for consumers and marketers, alike,” Marshal Cohen, chief retail industry adviser for NPD stated.

As the vaccine rollout, 58% of shoppers are more open to shopping in stores now. To make up for last year, 29% of customers are also willing to spend more.

Despite all that, there are a few pandemic shopping behaviors that remains unchanged. Most shoppers still think this holiday season will be similar to 2020 than of 2019’s  peak season. 51% consumers will be shopping before Thanksgiving. E-commerce will still be on the rise and free shipping is an important factor that can influence purchasing decisions.

Source: Holiday spending projected to grow up to 5%: NPD

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