More deals, more spending: NPR

This week officially kicks off the busiest shopping period of the year – it’s joy and mayhem for shoppers and a make-it-or-break-it season for most retailers.

People are expected to spend up to $989 billion this holiday season — a record. The National Retail Federation predicts that retail sales this winter will be up to 3.5% higher than last year. So far in November, shoppers have spent 9.6% more on online purchases alone, according to Adobe Analytics, which track transactions.

Some of the higher expenses are due to higher prices. But that’s not the whole story: A larger share of people also plan to splurge this holiday season, according to a study by the market analysis company Circana, which closely follows buying trends. It found people budgeting an average of $771 for the holiday season. Parents expect to spend $1,014 on average. Children, as any parent will tell you, are expensive.

Although inflation has been easing for most of the year, people say they feel squeezed after paying their expenses. And when budgets are tight, days are known for big discounts in the center. Generally, retailers expect a record number of traders between Thanksgiving Day and Cyber ​​Monday.

“This year, more consumers are seeing the holidays as a break from everything going on in the world,” wrote Marshal Cohen, Circana’s senior retail advisor, “and more are planning to buy more gifts for others to bring them joy during challenging times.”

Deals are the name of the game

In Circana’s survey, 62% of people said their higher spending on food and bills would lead to changes in how they shop. They are looking for off-brand purchases, perhaps buying fewer gifts or cheaper gifts, and – especially – looking for discounts.

Are the offers actually good? That is the eternal question. And as usual, the answer is mixed.

Thanksgiving falls later this year, which means fewer days between now and Christmas. Retailers have less time to sell Christmas gifts and decorations. This has analysts predicting that companies will continue to offer discounts.

“If we don’t see the sales numbers expected by retailers over the next few weeks, we could see additional markdowns in December to move inventory into the new year,” said Adam Davis, managing director of retail finance at Wells Fargo .

When are the best deals? Adobe offers predictions for online shopping specifically: Thanksgiving Day could have the biggest discounts on toys, sporting goods, furniture and appliances; Black Friday for TV; Saturday for computers; Cyber ​​Monday for electronics and clothing. Electronics discounts could hit 30% on Monday, Adobe predicts.

Shopping for classic gifts and a little fun

The top things people buy this weekend rarely change. There are electronics and gadgets, clothes and accessories, toys and gift cards.

Gifts people buy for themselves is a category that can shift with the economic vibes. This year, people are expected to spend about $44 more on themselves compared to last year. Almost half of the shoppers plan to buy something for themselves, according to Deloitte’s annual consumer survey.

Top toys are expected to include Lego, Hot Wheels and Barbie. Adobe too name check Pokemon trading cards, Tonie and Spider-Man figures and slime making kits. For adults, popular sellers include Dyson Airwrap hair stylers, Bluetooth speakers, fitness trackers and pickleball paddles. Circana notes that more people plan to buy beauty products, footwear and luggage.

And the trend toward gift experiences remains strong: More than half of shoppers surveyed by Circana said they planned to buy gift cards or tickets — to eat, travel, catch a game or show, or relax in a spa. Certificates for classes, adventures and other participating events make up a growing share of these gifts.

It makes sense to Betsy Brushway.

“We’re big travelers, so we want to cut back on Christmas gifts and spend more time getting out and exploring the world,” Brushway said during a recent visit to the Mall of America near Minneapolis from her home in Kentucky. “My husband and I set a budget this year for holiday shopping, so we’re sticking to that budget.”

Increased expenses, especially health and car insurance, put a damper on her spending, she said. Still, she had ordered Nike shoes from her nephew’s wish list and was looking for her “very girly” niece.

“I’m pretty thrifty myself. I’m a saver,” Brushway said.

But holidays are an exception. “At Christmas I like to spoil my family. They do a lot for me, so I like to give them something a little special.”