As the holiday season drew to a close, it appeared Americans had put aside some of their financial anxiety and higher costs to ramp up spending. According to a survey conducted by the National Retail Federation and Prosper Insights & Analytics, total spending during the holiday season hit an all-time high, increasing 4.1 percent to an estimated $730.2 billion.
The survey found that while economic indicators suggested consumer spending could slow this year, shoppers were still intent on spreading holiday cheer, splashing out an average of $1,450 per household. An overwhelming majority (85%) of those surveyed said they had already done all of their shopping or were planning to complete it before end of year.
The survey also found that shoppers chose the combination of digital and in-store shopping due to convenience and service that are available for both. The majority (70%) of shoppers did their browsing and research online before making purchases in-store, while 25% of purchases were made online.
In terms of payment methods, credit and debit cards retained their lead as the most commonly used payment method among holiday shoppers. Cash and check payments were second and third, respectively.
The survey results also show that shoppers had planned carefully with “half of those surveyed (51%) saying they set a total budget and planned to stick to it.”
Overall, it appears American shoppers have been able to manage their finances appropriately, which means the holiday season is likely to have been successful for the retail and financial services industry.
