ICSC, s member organization for the advancement of the marketplaces industry, predicts retail sales this holiday season will grow 3 percent to 3.5 percent compared to last year.
The prediction is based on a survey the organization conducted in September of a demographically representative sample of 1,009 people.
When food-and-beverage sales are factored in, ICSC forecasts total holiday spending will reach $1.7 trillion.
“Despite economic headwinds, 70 percent of holiday shoppers feel their financial situation is better than or the same as this time last year, signaling measured optimism among consumers,” Tom McGee, ICSC president and CEO, said. “Interest rate cuts and easing inflation are taking some pressure off holiday shoppers, but other macro factors – like geopolitical turmoil and the upcoming presidential election – are still at play.”
Other findings from the survey include:
The highest percentage of consumers since 2019, 241 million, plan to shop this year.
Shoppers plan to spend an average of $706 on gifts.
Gift cards are the most popular category for gift, with 58 percent of participants planning on purchasing them; followed by apparel, accessories, and jewelry, 52 percent; toys and games, sporting goods and other hobbies, 50 percent; restaurants and dining, 25 percent; experiential activities, 16 percent; and personal services, 14 percent.