The total expenditure for the holiday season is expected to break records to between $979.5 billion and $989 billion per an annual survey from the National Retail Federation and Prosper Insights & Analytics.
However, the spending for holiday gifts is anticipated to decrease 20% than last year. There seems to be some changes in customer's preference. Consumers are willing to spend more, but not merely on products only.
Analysts speculated that middle-class Americans are now limited in their spending throughout the holiday gift giving season because of inflation, but it seems that the problem is not only that. Consumers are increasingly seeking authentic, tangible experience as shoppers tend to spend more in environments that offer immersive and engaging experiences.
A study by Gradient reveals that 82 percent of retail companies have responded to this phenomenon and stepped up their budget for experiential marketing in the last three years. It seems that consumers are now visiting stores and going out to get more experience than just shopping products.
