Holiday Decorations Take Center Stage as Consumers Prioritize Experiences Over Gifts
As the holiday season approaches, many families are transforming their homes into winter wonderlands, prioritizing decorations and experiences over gifts. This trend is reflected in a recent survey by Deloitte, which found that consumers plan to spend 9% more on nongift purchases, with a significant portion of that increase going towards holiday decorations.
A Shift in Consumer Spending Habits
The survey revealed that respondents expect to spend $181 on home-related items, furnishings, and holiday decorations, a 22% increase from last year and nearly 60% more than the pre-pandemic 2019 holiday season. This shift in consumer spending habits is a welcome boost for retailers, who have noticed a pullback in other categories.
Retailers Capitalize on the Trend
Home Depot, Target, and Walmart are among the retailers that have capitalized on this trend. Target’s Chief Commercial Officer Rick Gomez noted that customers are looking for ways to add a little bit of seasonal decor, driving higher sales of accessories like frames, candles, and vases. Dollar General CEO Todd Vasos also expressed optimism about the retailer’s seasonal decor sales, citing customer response to Halloween decorations as a positive indicator.
However, Not All Retailers Are Seeing a Boom
National Tree Company CEO Chris Butler reported slower sales in the past two years, attributing the decline to consumers stretching out their replacement period for artificial Christmas trees due to pandemic purchasing patterns and inflation.
Finding Value in Holiday Decor
Despite the expense of decorating, many consumers are finding ways to make their holiday decor budgets stretch further. The Milam family, for example, spent about $1,000 on their front yard decorations, but made most of it themselves using supplies from Home Depot. They also recycled decorations from past years and prioritized experiences over gifts.
Experiences Over Material Gifts
Mike Milam, the father of two, explained that he’d rather have experiences than stuff, citing the joy and bonding that comes from creating holiday decorations with his family. This sentiment is echoed by many consumers who are prioritizing experiences and memories over material gifts this holiday season.
A Bright Spot for Retailers
As consumers continue to prioritize holiday decorations and experiences, retailers are finding a bright spot in an otherwise challenging economic landscape. By offering value, tapping into trends, and providing unique experiences, retailers can capitalize on this trend and drive sales during the holiday season.
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