Consumers are getting a jump on holiday shopping in order to take advantage of deals, and avoid problems with sold-out items and shipping delays.
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Thanksgiving is the traditional kickoff to the holiday shopping season, but this year many consumers began making their holiday gift purchases long before Halloween.
Tariff uncertainty, and related concerns about prices, and possible inventory shortages and shipping delays pushed growing numbers of U.S. consumers to begin their holiday shopping earlier than ever.
Surveys by rewards and data company Shopkick by Trax and personal finance website Bankrate found that significant numbers of Americans started their Christmas shopping in the summer, with many opting to take advantage of summer sales, such as Amazon’s July Prime Days.
The Shopkick by Trax survey found that 38% of Americans had started holiday shopping by the first week in September, and that 66% percent of those surveyed said they planned to shop earlier than usual this year,
Bankrate’s Holiday Spending Report showed that nearly half (49%) of shoppers had started, or planned to start before the end of October. Thirteen percent had started or planned to start by the end of August.
The National Retail Federation’s holiday survey found that 42% of U.S. shoppers planned to begin browsing, and buying before November, but that 60% expect to still have some holiday shopping to do in December, even with an early start.
While retailers have seen early shopping in previous years, consumers have particularly compelling reasons to shop early this year.
Consumers Want To Spread Out Their Spending
Consumers are worried about prices and about their economic future heading into the holidays. Deloitte’s annual holiday retail survey found that over half of consumers, 57%, expect the economy to weaken in the next six months, the most negative outlook since Deloitte began tracking economic sentiment in 1997. Three-fourths of shoppers said they expect higher prices on holiday goods.
By starting their shopping early, consumers watch prices and wait for deals. They also can spread out their expenses over several months.
Fifty-four percent of early shoppers in the National Retail Federation survey said a leading reason for shopping early is to spread out their budget.
“The early start gives you more time to spread out your cash flow and find the best deals,” Ted Rossman, Bankrate Senior Industry Analyst said in the Bankrate Holiday Spending Report.
Retailers Are Offering Early Deals
“You don’t have to wait until Black Friday anymore,” Rossman said in the Bankrate report. “Nowadays, those kinds of deep discounts typically start to appear in early October.”
Due to tariff uncertainty at the beginning of the year, large retailers brought in holiday inventory early, and are now eager to move it. Early promotions also give retailers a chance to capture part of consumers’ limited holiday budget before they have an opportunity to spend elsewhere.
Tight Inventories Could Lead to Out-Of-Stocks
Tariff uncertainty caused smaller retailers who were worried about possible tariff-driven price hikes to order conservatively, or delay ordering, meaning that the selection on store shelves could be limited.
The Shopkick by Trax survey found that more than half of Americans had experienced shortages, and more out-of-stocks than in previous years, as of early September.
Toys and video gaming gifts could be hard to find if parents wait until after Thanksgiving to shop. The Nintendo Switch 2 sold out quickly when it was released this summer, and while it is back in stock now in stores, the supply may not last long, James Zahn, Editor-in-Chief of The Toy Book, warned.
“It’s the hottest video game of the year, and history tends to repeat itself – you don’t want to be the mom or dad fighting the crowds in hopes of finding one in December,” Zahn said.
Late Thanksgiving Is A Good Reason To Shop Early
This year, Thanksgiving falls on November 27, meaning there are only 27 shopping days between Thanksgiving and Christmas. That is close to the fewest possible days – 26 – which happened last year when Thanksgiving fell on November 28. When Thanksgiving falls on the earliest possible day, November 21, shoppers have 33 days before Christmas to get their gift buying done.
The short Thanksgiving to Christmas period this year is expected to make Black Friday Weekend and early December more hectic. Forty-one percent of early shoppers in the NRF survey said they shop early to avoid the stress of the last minute rush.