A new survey from Boston-based L.E.K. Consulting and Civis Analytics has revealed the pandemic will result in reduced holiday shopping this year, with the average U.S. consumer reporting they're cutting their presents budget by 14 percent.
According to the survey, 44 percent of respondents said they had less disposable income in 2020 than in 2019 as a result of the pandemic, and 43 percent cited general concern about their overall finances and income security. The average expenditure on holiday gifts this year is expected to be just $400, down from $465 in 2019.
"Consumers will clearly be celebrating and giving gifts, but their celebrations will be subdued," said Manny Picciola, Managing Director at L.E.K. Consulting. "It's possible that they are planning to give fewer gifts in part because they are traveling and visiting less. But for many, the motivation is financial. Like so much else this year, the holiday season will suffer under the economic weight of the pandemic."
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