• by Gabriel Homem , Kelly Ravestijn , December 14, 2023

With the holiday season upon us, a sense of uncertainty looms over consumer spending patterns. According to a recent study by Retail Economics, one in three individuals plan to cancel their holiday travel plans in 2023. This trend indicates a desire to save money while still enjoying the spirit of the season. Instead of lavish vacations and extravagant parties, consumers are seeking meaningful experiences and connections closer to home.

Our internal holiday spending study this year found that 57% of consumers are hosting holiday get-togethers, with the majority planning to spend the same amount, if not more, than in previous years. It also found that 42% of consumers plan to host gatherings of between 10 -19 people.

This reality presents an opportunity for retailers and brands to capture the hearts and spending power of holiday shoppers by tapping into the Festive Nesting trend.

Festive Nesting is all about creating a joyous and memorable holiday experience without leaving home -- embracing affordable luxury, fostering connections, and cherishing/creating traditions. This trend is fueled by a longing for connection, tradition, and nostalgia, particularly in the face of external uncertainties. Consumers are seeking ways to make their homes feel extra special this holiday season, without breaking the bank.

Willing To Splurge?

Budgeting remains a concern for many consumers, with 30% citing it as the primary stressor. Food and drink decisions follow closely at 29%. Somewhat surprisingly though, 94% of consumers are willing to deviate from their budgets for the right items. This suggests that consumers are open to indulging in special treats or items that hold sentimental value.

Social Media Inspires Holiday Style

Despite budgeting concerns, 60% of consumers consider their holiday shopping style organized, highlighting a desire for planning and control amidst the festivities.

Social media platforms play a significant role in inspiring consumers' holiday plans and décor ideas. Facebook and Instagram lead the way (46%), followed by YouTube (32%), TikTok (31%), and Pinterest (24%).

However, emotions can play a significant role in shopping decisions. While 60% express excitement about planning for the holidays, 14% feel stressed, and 26% experience an initial excitement that turns into stress later. Retailers can address these mixed emotions by creating a stress-free shopping experience, offering personalized recommendations, and providing budget management tools.

Tailoring Strategies for Festive Nesting Success

Retailers and brands can effectively cater to the Festive Nesting trend and capture the hearts and spending power of holiday shoppers by considering the following tactics:

-- Drive loyalty and connection through curated collections of affordable luxury items that cater to specific tastes and preferences. Think social inspiration curated, from cocktail globes and butter candles, to the hottest tablescapes.

-- Leverage loyalty data and AI for deeper personalization and seamless experiences that allow consumers to browse, discover, and purchase.

-- Adapt to consumer concerns by implementing strategic pricing strategies, offering adaptive payment option and budgeting tools or tips to help consumers navigate their holiday spending plans effectively.

Hopefully, embracing these insights and strategies will help both retailers and brands successfully navigate the Festive Nesting opportunity, offering the best gift ever for marketers: knowing they helped their consumers create memorable holiday experiences.