REPORT: Delayed Holidays? 1 in 10 Americans Are Planning to Celebrate in 2025 Due to Cost
Findings from Invoice Home highlight the impact the current U.S. economy will have on consumer spending for the upcoming holiday season.
August 22, 2024, AUSTIN – Invoice Home, a leading invoice generating software designed for the invoicing needs of small businesses, freelancers, and entrepreneurs worldwide, today released its “2024 Holiday Spending” Survey, revealing the impact the current U.S. economy will have on consumer spending this holiday season. Conducted with third-party research firm Censuswide, data shows more than 1 in 10 (11%) U.S. consumers are planning to celebrate in 2025. Post-Christmas sales typically come with massive discounts from retailers, as they try to recover as sales historically plunge by 15% to 22% from December to January. By postponing holiday shopping until those sales, consumers are hoping to cash in on savings. With uncertainty looming around inflation and the cost of living, Americans are already thinking ahead to what this means for their wallets this holiday season.
64% of US consumers say inflation and the cost of living will likely impact their spending this holiday season, which will significantly affect retailers in the U.S. This is followed by credit card interest rates or the unavailability of credit (40%), as well as the outcome of the US presidential election (37%). Consumers stated if prices continue to increase due to inflation/external economic factors, they’ll cut back to save money by:
- Not traveling (25%)
- Opting out of gifting (24%)
- Thrifting gifts (23%)
- Boycotting brands that don't offer free shipping/returns (11%)
- Regifting all holiday gifts (8%)
- Taking out a second mortgage (5%)
“Unpacking this data and what it means for businesses, we can see the shift in consumer purchasing for the 2024 holiday season. Spending time now enhancing your online presence, adding holiday-specific keyword research and broadening your reach to meet consumers where they are is crucial in attracting business this year,” said Petr Marek, Co-Founder and CEO at Invoice Home. “And the most important piece of advice for businesses for the next few months: Train your staff to deliver the best customer experience.”
For businesses experiencing delayed payments and outstanding invoices this holiday season, Marek recommends prioritizing relationships with your customers. For small businesses, it is especially important to build and maintain these relationships.
Consumers will spend, but with caution
More than 1 in 10 (11%) of US consumers have already stated they cannot afford to buy gifts this holiday season. But, for those who do plan to shop, the top 3 ways they anticipate spending most of their holiday purchases in 2024 include during Black Friday/Cyber Monday (38%), doing most of their shopping in-store to specifically avoid shipping fees (33%) and if Amazon has a second Prime Day (30%).
Many Americans have already decided how they plan to cover expenses for the 2024 holidays, including dipping into savings (26%), which would be detrimental for the 1 in 4 Americans who have savings of less than $1,000. This is followed by going into credit card debt (18%) and leveraging Buy Now, Pay Later services (14%).
11% of US consumers even said they plan to delay bill payments to afford the season, with 19% willing to delay payment by 2-3 weeks in order to make ends meet during the holidays and another 1 in 10 (12%) by 1-2 months. This could have a significant impact on businesses, especially small businesses that rely heavily on each payment to survive during the busiest buying season of the year.
Gen Z and Millennials expect more from brands
Gen Z and Millennial consumers are holding grudges this season, stating that their experiences over the last year shape their decisions to shop with certain retailers, including:
- An increase in prices overall – 31% of Gen Z and 33% of Millennials
- Rude/unresponsive customer service – 21% of Gen Z and 22% of Millennials
- A poor experience with a shipping carrier the retailer used – 19% of Gen Z and 17% of Millennials
- An increase in cost to return – 15% of Gen Z and 17% of Millennials
- Poor communication around delayed shipping – 18% of Gen Z and 15% of Millennials
- Short returns/exchange windows – 14% of Gen Z and 12% of Millennials
As businesses struggle to attract customers this holiday season, it’s even more crucial to listen to consumers’ feedback and make adjustments to meet the needs of those shopping both in-store and online. Especially for small businesses: 35% of Gen Z and 26% of Millennial consumers anticipate spending most of their holiday purchases this year shopping at small businesses in store/online (Local boutiques, Etsy, etc.), followed by digital gift cards to avoid wrapping + shipping fees (19% of Gen Z and 20% of Millennials).
Methodology
All figures, unless otherwise stated, are from Censuswide. Total sample size was 2,002 US consumers. Fieldwork was undertaken between August 5-7, 2024. The survey was carried out online. The figures have been weighted and are representative of all U.S. adults age 18+.
About Invoice Home
Founded in 2011, Invoice Home is an invoice generating platform, simplifying the invoicing needs of small businesses, freelancers, and entrepreneurs worldwide by offering 100 customizable, multi-lingual templates and online payment integrations, all in a unique and user-friendly interface.
Headquartered in Austin, Texas and trusted by more than nine million customers in more than 150+ countries and territories, Invoice Home is the leading invoice generator for business professionals.
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DiffusionPR for Invoice Home
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