Inflation-squeezed consumers shifting holiday spending: Daymon report 

Michael Browne

Holiday traditions are ever-evolving (Friendsgiving, anyone?), but one thing that doesn’t change is that the holidays are a time for giving — and spending. Still, with inflation top of mind for many consumers, shoppers are making some adjustments to their annual holiday buying, including looking to more private brands.

With nearly 80% of shoppers expecting inflation to at least moderately or more affect their 2023 spend on holiday celebrations, consumers are shifting behaviors, according to “2023 Holiday Expectations,” a new report from Daymon, an Advantage Solutions company. Of shoppers that perceive food prices as higher than last year, 91% will be changing their purchasing behaviors, with deal-seeking the No. 1 purchasing shift.

Notably, over 75% of shoppers are not willing to buy smaller quantities of items — rather, they are buying private brands (94%), seeking out deals (66%), comparing prices online (31%) and shopping across more stores (44%). Shoppers are much more agile in this market, paying attention to items that provide the better overall value.

“Inflation continues to activate deal-seeking behavior this holiday season,” says Jean Ryan, vice president of strategic advisory at Daymon. “Shoppers are unafraid to search across multiple channels, retailers and brands in the hopes of finding the best overall value and checking all the items off their holiday shopping lists.”

Among other holiday trends found in the Daymon report:

“Retailers can balance the need to both save and celebrate by leading with strong private-brand strategies, both in-store and online,” says Ryan. “With consumers looking to compare prices and shop across more stores in search of deals, ensuring consistent assortment, marketing and promotions throughout the path to purchase will maximize the overall value they provide, from grocery to gifting.”

Download the full Daymon 2023 Holiday Expectations report.