Almost four in 10 Americans say that inflation concerns are having a major influence on when they start their holiday shopping, according to a late October survey from U.S. News. And 40% more say inflation fears are having at least some effect on when they start their shopping.
Only 12.5% are waiting for the traditional Black Friday sales the day after Thanksgiving. It seems retailers anticipated this trend because Black Friday sales events from major retailers are already happening.
Early shopping is also likely fueled by supply shortage fears. Nearly 80% of respondents say supply chain issues will affect their shopping at least somewhat.
Are Americans Going Back to In-Store Shopping?
Well, almost. Pandemic fears seem to be subsiding, with almost 48% of respondents planning to complete their holiday shopping using a mix of online and in-store purchases.
Here are the other findings on how they will shop:
- Online shopping only: 16.5%.
- Primarily online: 27.5%.
- Primarily in stores: 5.4%.
- In-store shopping only: 2.8%.
How Much Are Holiday Shoppers Spending This Season?
Despite inflation worries, about one in five respondents plan to spend more than $900 on holiday shopping this year. At the other end of the spectrum, just under a third say they’ll spend $500 or less this season.
- 20% plan to spend between $501 and $600.
- Almost 23% will spend between $601 and $800.
- More than 4% will spend between $801 and $900.
While holiday shopping will continue, it doesn’t mean you have to give in to high costs or dive into debt over it. All it takes are a few simple strategies and a little self-discipline.
4 Ways to Beat Inflation During the Holidays
What if you’ve selected a gift for someone and then realize you can’t afford it? Almost 30% of respondents plan to use a credit card and pay the bill next year. Unless you plan to pay the bill during the grace period and avoid paying interest, this isn’t a good idea.
Instead of going into credit card debt, give your shopping approach a makeover. Here are four ways to keep your holiday shopping on track this season:
- Create a holiday budget. I can’t stress enough how important this is, especially since prices continue to increase. Figure out how much you can afford to spend and then allocate the funds to each person on your gift list.
- Use credit cards strategically. While 58% say they plan to use their rewards credit cards to earn discounts on their purchases, 42% say they aren’t planning to do so. This is a missed opportunity to earn statement credits, travel discounts and more that you can use to offset holiday expenses. So far this year, I’ve earned nearly $4,000 in rewards by using a combination of credit cards to take full advantage of rewards.
- Avoid buy now, pay later offers. This is a new trend in credit cards, and nearly 15% plan to use this option. While there may be some circumstances that warrant considering BNPL, such as plans that don’t charge interest, a better alternative is to use a credit card with a 0% introductory annual percentage rate offer on purchases. But only 11% plan to use that option.
- Have a backup gift plan. Whether you encounter supply shortages or higher prices than you expected, it will be easier to adjust if you pick out a replacement gift ahead of time. Another idea is to use a gift card from the store that has a supply shortage. This can work if a specific item was requested and it isn’t a problem waiting for it.
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