Last week, the National Retail Federation predicted a 4.1% increase in holiday buying this year. I’d call that cautiously optimistic. This week, PwC and Strategy& released their holiday predictions and it’s not nearly as rosy.
According to the “2014 Holiday Outlook: Top trends, consumer behaviors and implications for retailers” report, average household spend will drop from $735 in 2013 to $684 in 2014.
The problem is that darned, old economy. 72% believe that the economy is the same or worse than it was a year ago so conversely, they plan to spend the same or less than last year. That doesn’t mean they plan to buy fewer items, it just means they need to find better deals on the items they need.