Slow Shopping the Holiday Season

The US consumer continues to be resilient, boosting retail sales by 2.8% in October year over year with store traffic broadly improving through the month. In light of the strong economic data, consumers are expected to continue spending through the holiday season.

Goldman Sachs Research expects consumer real spending to grow by 2.8% in 2024 on a Q4/Q4 basis. This could be driven by anticipated income growth – our economists expect continued job gains and strong real wage growth would lead to 3.1% real income growth in 2024 on a Q4/Q4 basis, with positive income growth across all income quintiles.

Even though the US consumer remains strong in spending this year, nearly three-quarters of shoppers have decided to “slow” their impulse spending, according to the latest survey from Affirm, a payment network company.

“Slow shopping” is when shoppers take more time with buying decisions and become more strategic about what they need to buy, rather than chasing the deal for fear of missing out.

Slowing down also gives shoppers more time to move past emotional spending and potentially save up for big ticket items. With the rise of social media shopping and influencers promoting products daily, it’s easy to get swept into the cycle of impulse shopping.

How to slow shop this holiday season

The key to slow shop is time – shoppers pause to consider whether they need the product, whether there are better prices or brands elsewhere, and if the quality is worth it. With ecommerce making price discovery easier, shoppers have many tools at their fingertips to make price and product comparisons with a little research.

As we enter the holiday season, here are some tips that could help you shop smarter and save.

1. Set aside a holiday fund

Take a step back and check your budget holistically (if you don’t have a budget, here is how you can create one). Are you on track this year? Do you need to adjust your budget to include holiday spending? Perhaps you have a partner to discuss your spending decisions with?

Once you have an idea of where you are in terms of your year-end budget, you can decide how much to set aside for the holidays. Planning ahead this way can also help you avoid taking on costly credit card debt.

2. Make a (shopping) list, and check it twice

Once you know how much you have to work with, write a list of what you need or want to buy for the holiday season. From home decorations, gifts for friends and family, or items you have held out all year to hopefully snag a good deal during the holiday sale, the list will help you focus on your expected purchases.

Remember to stick to that list, and check it twice to avoid any impulse buys.

3. Shop earlier

There are fewer shopping days between Thanksgiving and Christmas this calendar year, giving retailers less window to sell in between these major sale events. This may give incentive for retailers to promote sales earlier.

One way shoppers can stay ahead is by signing up for store newsletters and mobile alerts, giving you a heads-up on early deals and perks such as free shipping. Store loyalty programs may also give you rewards that you can use toward your next purchase.

4. Set price alerts

Many of the largest ecommerce platforms and search engines have price alert add-ons or settings that will send you a notification should an item you are following changes its price. This is a great tool to track the prices of big-ticket items such as electronics or flights that you want to purchase but don’t need right away.

5. Wait 24 hours before buying

At its core, slow shopping is about being thoughtful of your purchases before you buy. Here’s one simple step you can take: When you are shopping online, add the desired item to your online shopping cart and leave it there for 24 hours. When you come back to the cart, you may realize that there are some items you don’t really need, or you may have seen a better deal elsewhere.

As with every shopping strategy, there are some potential downsides to slow shopping as well. For instance, you could miss out on limited time deals if you take too long, or you may experience shipping and delivery delays due to the holiday season demand. The key is to plan ahead so that you can enjoy the gifts of the holidays without too much stress.