Holiday shoppers plan to spend 25 percent more, compared to 2020 season
JLL’s holiday survey results show customers will be “revenge shopping” this season as budgets near pre-pandemic levels
CHICAGO, Oct. 7, 2021 – Revenge shopping, the phenomenon where consumers make up for lost time with increased spending, is expected to buoy holiday foot traffic at retailers this season. JLL’s annual holiday survey results show consumers plan to spend 25.4 percent more this year, an average of $870 per person on all holiday-related purchases, compared to an average of $694 in 2020—meaning this year’s spending is nearing 2019’s pre-pandemic average budget of $874.
For many consumers, there is a pent-up demand for in-person shopping and experiences after the hiatus brought forth by the pandemic. JLL forecasts that 58 percent of shoppers plan to shop in stores or some form of shopping involving a physical store: 34 percent will buy online, pick up in-store (BOPIS) and 22.6 percent will take advantage of curbside pickup. The top five retailers that consumers plan to shop at include:
“Consumers are eager to return to in-person shopping this holiday season—immersing themselves in the holiday spirit to dining after a long day of shopping. It’s a full holiday experience that many shoppers look forward to,” said Greg Maloney, President, JLL Retail. “And, it’s refreshing to see that in-person dining and enclosed malls are at the top of consumers’ destination lists.”
“Revenge shopping from the pandemic feels personal this year, too, with consumers ready to treat themselves this holiday season,” said Naveen Jaggi, President of Retail Advisory Services, JLL, Americas. “JLL’s holiday survey results show more than 70 percent of shoppers plan to self-gift this year, with clothing and shoes taking the top categories as consumer wardrobes continue to evolve as workplaces reopen and vacations are booked.”
More than half of shoppers will shop deals on Black Friday and Cyber Monday, but for most shoppers, Black Friday and Cyber Monday won’t be the start of their holiday shopping. More than 50 percent of shoppers will start shopping before Thanksgiving, compared to 43.2 percent last year, while another 36.3 percent will start two to four weeks before Christmas. Then, a small number of shoppers – roughly 4 percent – will wait until the week before Christmas.
“To those last-minute holiday shoppers, proceed with caution,” Craig Meyer, President of Industrial, JLL, Americas advises. “While consumer shopping budgets may be returning to normal, the supply chain is still facing pandemic-related challenges that could cause inventory shortages and shipping delays. Consumers should expect to shop earlier in the season if they want to be guaranteed to receive their items by the holidays.”
Nevertheless, even with increased budgets, the top priority for holiday shoppers this year is still saving money (34.4 percent). And because affordable goods are top of mind for many, 90 percent of consumers will shop at a mass merchandiser, 73 percent will shop at an online retailer like Amazon or eBay, and nearly 30 percent will shop at a department store.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 92,000 as of June 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.