More than half of Americans (51%) plan to spend more than $500 this
holiday shopping season, a marked increase from the 36% who planned
to do so in 2022. A new TransUnion (NYSE: TRU) report found that
three in 10 consumers (29%) plan on spending more on holiday
shopping than in the year prior, while only 16% say they will spend
less.
Both data points represent the third consecutive year for their
respective trends, indicating continuing consumer resiliency. The
findings were corroborated by the amounts consumers plan to spend
this year, with significant increases in the higher spend brackets.
The shift was even more exaggerated in the drop at the lower end of
planned spending.
Planned Holiday Spending, 2023 vs
2022
|
Less than $100 |
$100-$250 |
$251-$500 |
$501-$1,000 |
More than $1,000 |
2023 |
4% |
17% |
29% |
30% |
21% |
2022 |
17% |
21% |
26% |
22% |
14% |
Among those planning to spend more, the majority represent
high-income households, those earning $100,000 or more (59%), and
households with children (63%). Among middle-income households, 25%
plan to spend more, while 16% of low-income households will
increase holiday spending. The full findings are available in the
2023 TransUnion Holiday Shopping Report.
“Despite what seems like a constant drumbeat of negative
news—rising interest rates, persistently high inflation and
more—consumers remain resilient and their positive outlook for this
year's holiday shopping season is a testament to the continued
strength in the labor market, with wage growth outpacing
inflation," said Cecilia Seiden, vice president of TransUnion’s
retail business. “The key for retailers will be to understand their
principal consumer segments to deliver the right offers at the
right time.”
Student loans expected to have limited
impact on holiday spendingNearly eight
out of 10 (78%) consumers said resumed student loan payments will
have no effect on their holiday shopping since they either do not
hold student loans (66%), have been paying their loans during the
pause (5%) or will finish their shopping before payments resume
(7%).
However, among the 13% of consumers who say student loans will
have a moderate or large impact on spending, half still plan to
spend more on holiday shopping. Only 15% of this group say they
will spend less this holiday season.
Prior TransUnion research found half of consumers with student
loans have payments under $200 and 80% of borrowers paid less than
$500 per month. While not insignificant, many high-income
households can likely find ways to budget for these payments
without sacrificing holiday gift buying.
The hottest gifts of 2023When asked what types
of gifts they plan to buy, the top three categories were gift cards
(71%), clothing (71%) and toys (51%), reflecting a practical
approach to their gifting plans. Those priorities shift somewhat
when compared by consumers who plan to spend more, the same or less
on holiday shopping this year.
Top Three Gift
Categories for Consumers Planning to Spend More,
the Same or Less on Holiday Shopping
Category |
No. 1 |
No. 2 |
No. 3 |
Spending More |
Clothing (78%) |
Gift Cards (69%) |
Electronics (63%) |
Spending the Same |
Gift Cards (74%) |
Clothing (68%) |
Toys (46%) |
Spending Less |
Clothing (67%) |
Gift Cards (66%) |
Toys (51%) |
Beyond the top three gift categories, consumers who plan to
spend the same or less were significantly less likely to plan
gifting in discretionary categories. For example, 48% of consumers
who plan to spend more identified events and experiences as a gift
category compared to 23% of those planning to spend the same or
planning to spend less.
Discretionary Gift Categories for
Consumers Planning to Spend More, the Same or Less
on Holiday Shopping
Category |
Tickets for Events/ Experiences |
Equipment/Hobby Supplies |
Travel |
Spending More |
48% |
47% |
40% |
Spending the Same |
23% |
26% |
17% |
Spending Less |
23% |
26% |
12% |
“It is critical for retailers to understand their customers at a
granular level,” said Mark Rose, senior director of TransUnion’s
retail business. “The ability to differentiate between audiences
and tailor marketing and special offers accordingly makes a huge
difference in how much business they can win.”
Consumer tolerance for security depends on in-store vs.
onlineThe past year saw several high-profile “smash and
grab” attacks on retailers, causing many to place more products
inside security cases to prevent organized retail crime. While the
majority of consumers (66%) say they haven’t noticed or don’t care
that more products are being locked up, one-third of consumers
dislike the practice.
In fact, 15% said they won’t wait to have an item unlocked by a
store employee; 9% will instead purchase those items online; and
another 9% will generally carry a negative view of the store. These
findings vary slightly across regions in the U.S., with higher
levels of negative feelings in the Northeast and West, which have
been more highly affected by theft and organized retail crime.
Consumers are far less ambivalent about online security measures
as they protect the consumers as well as the retailers. In fact,
96% of shoppers have a positive or at least neutral view of
additional security measures. Six in 10 (59%) say added security
makes them more likely to shop with that retailer and 37% say they
are willing to spend the time to verify their identity without it
affecting their shopping habits.
However, there was one point on which both groups agreed, which
is that two-factor authentication is the top choice for online
shopping security measures.
“A robust identity solution can help retailers make transactions
smooth and seamless, while still delivering a friction-right
customer experience that protects themselves and their customers
from identity theft, account takeover and other forms of fraud,”
said Seiden.
Households with children lead holiday vacation
travelOver half of families with children plan to travel
this holiday season, with 33% visiting family and another 24%
planning a holiday vacation. A similar number of households without
children planned to travel to visit family (30%) while a much lower
percentage planned to travel for vacation (14%).
These findings are part of research conducted for the 2023
TransUnion Holiday Travel Report, which includes insights regarding
consumers’ plans on how long they plan to travel, where they want
to stay and much more.
For households planning to travel for vacation, those with
children—especially of younger ages—are much more likely to opt for
relaxing trips than households without children. Households with
children under six were more likely to prefer an all-inclusive
vacation (38%) or cruise (33%), while households with older
children were most likely to prefer a resort (52%) or a visit to a
big city (48%). Comparatively, only 15% of households without
children are planning an all-inclusive vacation, while 19% plan to
take a cruise, and 28% plan to visit a big city.
More than half (57%) of those traveling for vacation plan to
spend between $1,000 and $5,000. However, 18% are budgeting between
$5,001 and $7,500, and another 17% plan to spend more than $7,500.
Importantly, most families are not planning to increase their debt
for these trips, with 42% paying with their debit card and 38%
planning to use a credit card they will pay off before the next
statement.
“This year marked a clear return to travel, although consumers
are being thoughtful about not over-extending themselves
financially while getting away,” said Seiden. “Particularly for
those with school-aged children, the holiday season is becoming an
opportunity for a relaxing winter getaway.”
For more information, read the 2023 TransUnion Holiday Shopping
Report and 2023 TransUnion Holiday Travel Report.
In preparation for the holiday season, retailers can leverage
tools like the TransUnion TruAudience™ line of solutions to help
model, create and segment relevant audiences. Doing so can help
retailers better market to their key audiences.
Retailers should also consider the TransUnion TruValidate™ line
suite of solutions, which comprise identity and device proofing
technologies to help catch fraudsters early with insight into
device history, reputation and behavior, while reducing friction
for legitimate purchases.
Additionally, TLOxp, part of the TransUnion TruLookup™ solution
line, provides deeper investigative insights to help link
individuals and tie in-store theft to eCommerce fraud, and reduce
retail shrink.
About the research
Holiday ShoppingThis online survey of 1,512
adults was conducted in August 2023, by TransUnion in partnership
with third-party research provider, Dynata. Survey participants
included adults 18 years of age and older residing in the United
States- who will be shopping for holiday gifts this year.
Participants were surveyed using an online research panel method
across a combination of desktop, mobile, and tablet devices. Survey
questions were administered in English. All U.S. regions are
represented in the study survey responses. To ensure general
population sample representativeness across United States resident
demographics, the survey targeted respondents in line with the
census statistics on the dimensions of age, household income, and
region. Generations are defined as follows: Gen Z, born 1996- 2005;
Millennials, born 1981-1995; Gen X, born 1966-1980; Baby Boomers,
born 1945-1965; and Silent, born 1928-1944. These research results
are unweighted and statistically significant at a 95% confidence
level within ±2.5 percentage points based on calculated error
margin. Please note some chart percentages may not add up to 100%
due to rounding or multiple answers being accepted.
Holiday TravelThis online survey of 1,512
adults was conducted in August 2023, by TransUnion in partnership
with third-party research provider, Dynata. Survey participants
included adults 18 years of age and older residing in the United
States - who will be shopping for holiday gifts this year. Data in
this report is drawn from a subgroup of 739 adults who will be
traveling during this upcoming holiday season, in addition to
shopping for holiday gifts. This sample does not include US adults
who will be traveling over the holidays but do not plan on shopping
for holiday gifts this year. Participants were surveyed using an
online research panel method across a combination of desktop,
mobile, and tablet devices. Survey questions were administered in
English. All U.S. regions are represented in the study survey
responses. To ensure general population sample representativeness
across United States resident demographics, the survey targeted
respondents in line with the census statistics on the dimensions of
age, household income, and region. Generations are defined as
follows: Gen Z, born 1996- 2005; Millennials, born 1981-1995; Gen
X, born 1966-1980; Baby Boomers, born 1945-1965; and Silent, born
1928-1944. Research results for the subgroup of holiday travelers
are unweighted and statistically significant at a 95%
confidence level within ±2.5 percentage points based on calculated
error margin. Please note some chart percentages may not add up to
100% due to rounding or multiple answers being accepted.
About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company with
over 12,000 associates operating in more than 30 countries. We make
trust possible by ensuring each person is reliably represented in
the marketplace. We do this with a Tru™ picture of each person: an
actionable view of consumers, stewarded with care. Through our
acquisitions and technology investments we have developed
innovative solutions that extend beyond our strong foundation in
core credit into areas such as marketing, fraud, risk and advanced
analytics. As a result, consumers and businesses can transact with
confidence and achieve great things. We call this Information for
Good® — and it leads to economic opportunity, great experiences and
personal empowerment for millions of people around the
world. http://www.transunion.com/business
Contact |
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Dave Blumberg |
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TransUnion |
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E-mail |
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david.blumberg@transunion.com |
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Telephone |
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312-972-6646 |
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