Here’s how consumers will reduce their holiday spending

Consumers may spend less on gifts this year.

A new survey reveals the areas holiday shoppers plan to cut back this year.

A spokesperson for global marketing solutions provider Snipp emailed Chain Store Age the results of a survey of roughly 300 U.S. consumers asking them about their holiday shopping plans. Almost all (97%) respondents said the cost of living influences their holiday shopping plans in some form while two-in-three (65%) said it “extremely” or “significantly” influences their plans.

Unsurprisingly given these results, 81% of respondents plan to cut back on their holiday shopping this year compared to last year and close to four-in-10 (38%) said they plan to cut back “extremely.”

Generationally, boomer respondents (69%) are less likely to cut back than respondents who are in the Gen Z (85%), Gen X (83%) or millennial demographics (81%).

Product categories respondents are most likely to cut spending on year-over-year include electronics (53%), health & beauty (45%), toys (44%), groceries (36%) and home goods (35%).

Four-in-10 or more respondents also have specific plans for reducing the cost of their holiday meals:

• 45% plan to substitute ingredients with more affordable options.
• 43% plan to prepare more meals at home instead of eating out.
• 42% plan to shop at discount or budget grocery stores.
• 39% plan to use more coupons in grocery stores.

Snipp’s findings that most consumers will reduce their holiday spending year-over-year contradicts many other forecasts for improvement, such as the recent prediction for steady growth from the NRF.