With the COVID-19 pandemic casting a shadow of uncertainty over traditional holiday gatherings and celebrations, many consumers in the U.S. are using their wallets to get into the holiday spirit – for better or for worse.
To gauge consumer sentiment about their holiday shopping plans this year, LendingTree surveyed more than 1,000 consumers in the U.S. in early October.
Key findings
- According to survey findings, 1 in 4 (25%) consumers have already finished their holiday shopping. That number rises to 44% of parents with kids under 18, and nearly half (49%) of those with household incomes of $100,000 or more.
- Those who are anticipating holiday shopping debt include 55% of parents and 47% of those who were laid off or furloughed due to the pandemic. Overall, 31% of consumers believe they will incur debt this holiday season.
- About 6 in 10 (59%) parents will spend more this holiday season than last year, as will 52% of men. On the other hand, 50% of baby boomers and 47% of women expect to spend less this holiday season.
- More than 1 in 5 (22%) consumers will buy all of their holiday gifts online. In contrast, just 11% will do all of their holiday shopping in a physical store.
Some Americans are ushering in the holiday season early this year, as 1 in 4 consumers have already completed shopping for everyone on their lists. Others, faced with financial challenges related to the coronavirus crisis, are turning to credit cards to help them create a sense of normalcy this holiday season. As a result, many consumers may start the new year digging out of debt.
The COVID-19 pandemic might have played a role, suggested Matt Schulz, chief credit analyst for LendingTree. “Because of the coronavirus relief bill, increased unemployment benefits and overall reduced spending during the last six months, many Americans have a little more money in their bank accounts today than they otherwise would. It’s possible that some folks have taken advantage of that surplus to do a little early holiday shopping,” Schulz said.
