A majority of consumers in a recent IRI survey said they would spend the same amount on holiday spending as they did in 2015, as concerns about personal finances remain top of mind for many.
The IRI Consumer Connect survey of more than 2,200 respondents found that 55% of consumers would keep their spending level with last year. Nearly half of those surveyed said they feel that their household finances are strained, with two-thirds of those feeling that strain saying they feel things will worsen before they improve.
“The uncertainty associated with the presidential election, particularly this unconventional election, is coinciding with the holiday shopping season, adding to concerns about keeping the financial ship afloat during and after the transition in the Oval Office,” said Susan Viamari, vp/Thought Leadership for IRI. “As a result, consumers are really taking a cautious approach to the holidays this year.”
Home entertaining for the holidays remains highly popular, but 41% consumers in the IRI survey said they would look for ways to cut costs on food and beverages. Slightly more than one-third of respondents said they plan to spend about the same on holiday entertaining as they did in 2015.
To help get the biggest bang for their buck, 61% of consumers said they plan on clipping coupons, up 6% from last year; while 41% said they would look for private label products as a way of reducing costs, up 5% from 2015.
“Retailers and manufacturers really need to be savvy this holiday season,” said Viamari. “We are firmly planted in a time of change, and consumers are concerned about what the New Year will bring, so they are adjusting their budgets accordingly. Retailers and manufacturers that help shoppers keep these holiday resolutions will enjoy the bounties of the season.”
