The National Retail Federation (NRF) predicts a solid growth in U.S. holiday spending for 2024, with sales projected to rise between 2.5% and 3.5% compared to last year’s numbers. This year’s total holiday spending is expected to reach between $979.5 billion and $989 billion during November and December, up from the $955.6 billion recorded in 2023.
“The economy remains fundamentally healthy and continues to maintain momentum heading into the year’s final months. The winter holidays are an important tradition to American families, and their capacity to spend will continue to be supported by a strong job market and wage growth,” said Matthew Shay, president and CEO of NRF.
In addition, e-commerce will have an important role in this holiday season’s spending surge, with online and other non-store sales expected to rise by 8% to 9%, reaching between $295.1 billion and $297.9 billion. Last year, these online sales saw an impressive 10.7% increase, totalling $273.3 billion. The shift to online shopping continues to be a strong driver for retail growth, showing the ongoing consumer preferences for digital shopping options.
Retailers are also getting ready to increase their workforce to meet seasonal demand. The NRF forecasts that retailers will bring on between 400,000 and 500,000 seasonal employees, a slight decrease from the 509,000 hired last year. Some retailers may have already begun hiring in October to support early holiday shopping events.