ICSC: Consumer holiday spending on goods, services in big YOY increases
Holiday 2021 was one for the record books despite slower December sales.
Sales grew 17% year-over-year in November and December, according to ICSC’s 2021 Post-Holiday Survey. (The ICSC includes restaurant sales in its total.) Consumers spent an average of $1,011 during the holiday season. Fifty-percent of shoppers reported spending more than last year, while 23% spent the same and 23% spent less.
Holiday sales slowed in December, which ICSC said could be attributed to the longer holiday shopping season this year. Forty-five percent of shoppers noted that they started holiday shopping earlier than in the 2021 season compared to previous years.
ICSC’s survey also found that consumers spent $736 overall on goods and $275 on services during the entire holiday period, up from 2020 spending of $625 and $170 in each respective category. Shoppers spent $579 on holiday-related items in 2021, up from $457 in 2020.
On average, those who spent more reported spending about 21% more than last year — a strong sign of resurgence for the retail industry, according to ICSC. Shoppers noted a higher cost of holiday items (28%), an increase in the number of people for whom they bought gifts (26%), and wanting to go above and beyond for a more celebratory atmosphere (25%) as the top reasons for spending more than in 2020.
Last week, the National Retail Federation reported that retail sales from November 1 through December 31 grew 14.1%. The NRF excludes restaurant sales from its count.
“This holiday season was a record-breaking success by any metric, and the strong retail sales are a sign of momentum for 2022,” said Tom McGee, president and CEO of ICSC. “Despite sales slowing in December, numerous data points continue to suggest the economy is strong and resilient in the face of disruption, and America’s marketplaces are playing an essential part driving our entire economy forward.”
Despite the pandemic, retail sales have continued to see year-over-year growth even in the face of challenges to include supply constraints and shipping delays, noted ICSC. Even with those issues, 64% of shoppers felt that retailers did a good job of making sure shelves were stocked and merchandise was available.
“We expect 2022 to bring continued demand for in-store shopping and experiences, while consumers will continue to take advantage of online and click-and-collect options,” said McGee. “Successful retailers will leverage all channels at their disposal to reach consumers and meet their growing needs.”