Summary
Online holiday shopping is expected to increase by 5.3% this year, reaching $253.4 billion, but this growth rate is slower compared to last year's increase. Economic concerns like inflation and tariffs are causing consumers to reduce discretionary spending on items like clothing, home goods, and electronics. Experts note that higher-income consumers might still spend more, but middle-income households are likely cutting back significantly.
Key Facts
- Online holiday shopping is expected to rise 5.3% this year, reaching $253.4 billion.
- This growth rate is slower than last year's 8.7% increase during the holiday period.
- Economic worries, such as inflation and tariffs, are leading to reduced consumer spending.
- Apparel, home goods, and electronics sales are likely to be most affected.
- Overall holiday spending, including in-store, is expected to grow by only 4% over last year.
- Economic experts notice reduced spending primarily among middle-income households.
- The food shopping sector might see higher prices, particularly due to issues like the H5N1 virus affecting turkey supplies.
- Toys and imported goods may also see sales declines as prices rise.
