Consumers Tighten Belts as Holiday Spending Shifts Toward Online Deals and Free Shipping

As the holiday season approaches, a new survey by Snap Finance reveals a significant shift in consumer spending patterns. With economic concerns and personal financial situations weighing heavily, a substantial portion of shoppers are anticipating a reduction in their holiday budgets. However, this doesn't mean they're abandoning the festivities altogether. Instead, they're turning to strategic online shopping tactics, such as seeking out free shipping and taking advantage of major sales events, to stretch their dollars further.

Navigating the Evolving Holiday Shopping Landscape

Early Birds and Savvy Shoppers

The survey findings indicate that consumers are getting an early start on their holiday shopping, with approximately 50% of respondents planning to begin their purchases by October. This trend is particularly pronounced among Millennials, Gen Z, and households earning over $75,000, with 29% and 32% respectively starting their shopping in September or earlier. Notably, only 12% of shoppers intend to wait until December to begin their holiday preparations.

Embracing Major Shopping Events

The data also highlights the continued popularity of major shopping events, with a staggering 86% of holiday shoppers planning to participate in at least one. Black Friday (57%) and Cyber Monday (55%) remain the most favored, but a significant portion (34%) also intend to shop on Thanksgiving Day, and 19% will hit the stores on Christmas Eve. Younger generations, in particular, are more likely to engage in these shopping extravaganzas.

The Rise of Online and Mobile Shopping

The shift toward digital shopping channels continues to gain momentum, with only 22% of respondents preferring physical stores. Meanwhile, 40% of shoppers favor using their phones, and 35% opt for computers. This trend is especially pronounced among Millennials, with 47% indicating a strong preference for mobile shopping.

Budgeting Strategies in Uncertain Times

As consumers navigate the economic landscape, budgeting has become a top priority. An impressive 79% of holiday shoppers plan to set a spending budget, and 89% expect to adhere to it. While 44% anticipate spending the same as last year, a significant 35% intend to cut back on their holiday spending due to economic concerns, inflation, and personal financial situations.

Stress and Splurges: The Emotional Rollercoaster of Holiday Shopping

The survey also reveals the emotional toll of holiday shopping, with 57% of shoppers experiencing stress related to the process. Gen X respondents express the highest levels of concern, at 66%. However, the data also suggests a willingness to indulge, with 37% of shoppers planning to buy gifts for their pets, led by Millennials at 45%.

Prioritizing Value and Convenience

When selecting retailers, consumers place a high value on factors that help them stretch their budgets. Free shipping or delivery is the top priority for 79% of respondents, followed closely by sales and deals (70%). The availability of flexible financing options also holds significant importance, particularly for Millennials (48%)."As we approach the holiday season, our research indicates a trend toward more cautious shopping habits, and a significant uptick in online purchases," said Rob Barnhart, President of Snap Finance. "This shift is driven by consumers' need to manage budgets effectively in a tight economy. With Snap's flexible financing solutions, we help ensure that customers can navigate their holiday shopping with ease and financial peace of mind."