1 in 3 American households say they are worse off financially than last year — so holiday spending could crater

1 in 3 American households say they are worse off financially than last year — so holiday spending could crater
Shoppers look for early bargains as the Black Friday sales begin on Thanksgiving Day in Los Angeles, California on November 28, 2019.MARK RALSTON/AFP/Getty Images
  • The pandemic's negative impact on Americans' finances may affect how much they are willing to spend this holiday season.
  • Axios' Dion Rabouin reported on Deloitte's latest holiday retail season survey that looked at how people plan to spend money this season.
  • According to the survey, 29% of holiday shoppers said their household's financial situation is worse this year, while 43% said their situation is about the same and 28% said it is better than last year.
  • With nearly 1 in 3 Americans saying their financial situation is worse this year, 38% of respondents said they plan to spend less money this holiday season, which Rabouin reports is the highest share since the Great Recession.
  • The Wall Street Journal reported that holiday sales in November and December usually make up about 20% of US retail sales in a year.
  • The Deloitte report notes that the two main reasons respondents said they plan to cut spending are because they are worried about the current economic situation and because they want to save money.
  • Many Americans are out of work right now, affecting their current finances. There were about 3.8 million permanent job losers in September, 2.4 million long-term unemployed, and 10 million continued unemployment claims.
  • Another notable finding from Deloitte's report is that the majority of respondents want contactless shopping and around half are worried about shopping in stores.
  • The holiday season will not only be hard for consumers, but retailers looking to hire. As Business Insider's Bethany Biron previously reported, a survey done by global consulting firm Korn Ferry found nearly half of 50 companies surveyed said they are having a hard time recruiting for the upcoming holiday season because of coronavirus concerns.
  • Major retailers like Walmart are planning to hire more seasonal workers mainly to fill online orders.
{{}}