Christmas is nearly two months away, but that hasn't stopped many Americans from starting their holiday shopping.
According to data released by the National Retail Federation, 40 percent of Americans start their holiday shopping by Halloween. That is why many retailers begin holiday marketing in September, the NRF said..
In additional holiday shopping data released by the NRF this week, one piece of unknown data is whether prices will increase this holiday season due to tariffs.
"Some holiday merchandise including apparel, footwear and televisions are subject to new tariffs that took effect on September 1, and other products will have tariffs applied on December 15," the NRF said.
The NRF added that retailers will work to limit the impact of tariffs, but that many small businesses will be unable to absorb the costs.
For this holiday season, the NRF expects retails to rake in 4 percent more revenue compared to 2018, with between $727.9 billion and $730.7 billion in total revenue.
While spending on gifts for family is expected to decline, spending on gifts for non-family members could see a giant increase the NRF said.
For the average consumer, they said they will spend $1,047.83 this holiday season. Nearly 59 percent of consumers said they will shop for gift cards; 52 percent for clothing and accessories; 35 percent for books and other media; 29 percent for electronics; and 24 percent for home decor. Of the $1,047.83, consumers said they'll spend $501 on gifts for the family, which is actually down from $506 from last year. Gifts for non-family is expected to see a jump from $106 in 2018 to $122 in 2019.
Non-gift spending is expected to increase from $155 in 2018 to $162 this year, as consumers said they will take advantage of discounts offered during the holiday season.
“Younger consumers are helping drive the spending increase this year,” Prosper Insights Executive Vice President of Strategy Phil Rist said. “They’re not just spending on their immediate family members, they’re also treating their larger circle of co-workers and friends to gifts.” More than half of shoppers between the ages of 25 and 34 (52 percent) plan to purchase gifts for co-workers, and 82 percent of those between 18 and 24 plan to purchase gifts for their friends.