Don’t expect a holiday gift bonanza this year. More than half of consumers plan to spend less amid inflation and economic worries

The report underscores how shopper spending patterns are shifting, with increased ranges of inflation, rising rates of interest and credit-card delinquencies eroding buying energy, Jim Doucette, shopper merchandise and retail chief at EY-Parthenon, mentioned in an interview. 

The findings are from a ballot of greater than 22,000 shoppers in 28 international locations, together with the US, China, India, Brazil, Japan and Germany. Of these surveyed, 80% say they’re involved about their funds. To stretch budgets, extra shoppers plan to cook dinner and entertain at dwelling this yr and reduce on restaurant takeout. 

Kristina Rogers, EY’s world shopper chief, added that buyers are “continuously re-evaluating what they deem to be important, and are more and more avoiding non-essential impulse purchases.” 

The research, which was carried out in September and early October, exhibits that fifty% of shoppers say they’ll store largely or solely on-line this season — a 16% improve from final yr, however nonetheless beneath the 61% that favored e-commerce in 2020. Ten % say they’ll solely do in-store procuring this yr, which is 14% lower than final yr and barely increased than in 2020, when the pandemic was nonetheless limiting shopper mobility. 

EY’s survey exhibits that 39% of shoppers within the US and 35% in Europe plan to spend much less in the course of the holidays. In China, solely 11% say they’ll spend much less this yr, whereas 45% plan to extend spending.