After an 11% drop in expected holiday spending from $1,014 in 2013 to $900 in 2014, consumers plan to spend 3% more in 2015.
Discover’s annual holiday survey also found, compared to five years ago, when holiday shoppers planned on spending $730 on average, this year’s anticipated spend of $927 represents a 27% increase.
When differentiating between millennials and non-millennials, the younger generation is spending more at a faster rate: 43 percent of shoppers between the ages of 18-34 expect to spend more this year than they did last holiday season, compared to 22 percent of shoppers ages 35 and older.
The preferred method of payment for holiday shopping will be with a credit card, as approximately 41% of those surveyed will pay with credit, followed by 27% using a debit card and 18% spending cash. Credit card usage is up 18% compared to five years ago when only 23% of those surveyed planned on using their credit card most often for holiday shopping.
Both millennials and non-millennials plan to spend similar amounts overall this holiday season”$941 and $926, respectively”however, the Discover survey found stark differences in the two groups’ shopping habits.
Millennials are expected to outpace non-millennials more than 2-to-1 this year when it comes to shopping on mobile devices, as 73% of millennials surveyed say they will use a smartphone or tablet for holiday shopping, compared to 32% of non-millennials. Similarly, 52% of millennials say they’ll do most of their holiday shopping online, compared to 42% of non-millennials.
When it comes to mobile wallets, 36% of millennials surveyed currently use that technology, compared to 15% of non-millennials. Among those using a mobile wallet, 80% of millennials say they will use it for holiday shopping, compared to 69% of non-millennials.
Additional survey findings include:
• While millennials plan to spend slightly more this season than non-millennials, 66% of millennials say they will set a budget for holiday spending, compared to 52% of non-millennials.
• Consumers identified sales/discounts (57%), convenience (19%) and customer service (13%) as the most important factors when shopping at retail stores this holiday season.
• Consumers are split when asked what type of shopping they plan to do most this year, with 45% planning to shop in-store and 46% shopping online
• Credit card rewards continue to be a factor in choosing credit as the preferred method of spending. Of those using credit cards the most this season, 42% are doing so in order to earn rewards points
For data, background and forecasts on Holiday Spending: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
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