Never mind inflation, it looks like there will still be plenty of presents for everyone during the holidays this year. Just as long as you don’t mind less food on the table.
Just as they have all year, shoppers continue to be stressed about grocery prices and are pinching pennies wherever they can, sometimes even doing without. But when it comes to holiday shopping, sure, shoppers are trying to save money. But doing without is not an option.
Adobe Analytics, which last month predicted “record discounts” online this year, has found that early-season deals have already enticed shoppers to do a whole lot of spending. Last month, promotional prices and events like Amazon’s second Prime Day of the year prompted shoppers to spend $76.8 billion online, up 5.9% from this time last year. And that’s not because of inflation – last month’s spending was “driven by net new demand, and not just higher prices,” Adobe noted.
So it appears shoppers are already in a buying mood when it comes to holiday gifts. But this newfound eagerness to spend doesn’t seem to apply at the grocery store.
The latest Consumer Digest from the retail data analytics company 84.51° found that nearly half of all shoppers say they’re feeling financial stress. But when asked what specifically is causing that stress, holiday spending was last on the list, cited by just 51%. First on the list, cited by 83%, was grocery prices.
So nearly two-thirds of shoppers say they’re still looking for coupons and deals at the grocery store, half are cutting back on nonessentials, and 39% are buying fewer items overall. In addition, among the half who say they’re switching to lower-cost brands to save money, they’re most willing to switch brands of paper products, household cleaning items and packaged shelf-stable grocery items like canned goods and pasta.
Even Thanksgiving, a holiday that’s all about food, is not immune to grocery cost-cutting. Two-thirds of shoppers say they are cutting back on their Thanksgiving grocery spending, by buying fewer nonessentials like alcohol, appetizers and desserts. An overwhelming 98% say they will seek out as many or more coupons and deals this holiday season than they did last year, with 62% planning to download digital coupons, 58% seeking out weekly sale items and 29% hoping to take advantage of personalized paper coupons.
It appears, then, that shoppers are more likely to trim their Thanksgiving menu than their holiday gift list. Adobe says holiday shopping so far has already hit record levels. Our grocery spending, meanwhile, has been hitting record levels all year. So it’s a good thing the holiday gift-giving season only comes once a year. Come January, as those holiday bills start arriving, saving money during your regular grocery run may suddenly become more important than ever.
Image source: calliope 
