Consumers to be More Frugal This Holiday Season
Nearly one-third (32%) of consumers are planning on spending less on holiday celebrations in 2015 than they did a year ago, according to an IRI MarketPulse survey.
Last year, consumers spent nearly $13 billion in the four-week period after Thanksgiving.
IRI, a company that provides predictive analysis to businesses, also found that consumer confidence took a dive during the third quarter of 2015 due to strained personal finances, stagnant wages and rising health care and education costs. This more pessimistic view will impact holiday festivities.
Consumers have been cutting back for the past six months, with more than half of Millennials reporting they made cutbacks, and 37% of adults over 55 spending less.
To save money, consumers will plan ahead to help find deals before leaving for the store:
- 62% will prepare a list at home
- 54% will clip coupons from newspapers/circulars
- 34% will rely on private label solutions
- 29% will redeem credit card points or store points
While consumers are feeling strapped for cash this year, many are optimistic about 2016. 29% of Millennials and 21% of those 55 or over expect the economy to improve within the next six months.
Millennials are most optimistic this upswing will improve their personal finances (57%). Only 37% of Gen Xers and 21% of Baby Boomers expect better financial health.