Inflation

Labor Day spending expected to hold steady for many shoppers

A little more than half of consumers are not planning to cut back on spending for the holiday despite inflation, according to a new report.
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Shoppers are getting ready for Labor Day, and 54% are planning to spend their money on holiday essentials the same as they always have, according to data and tech company Numerator’s recent Labor Day Weekend Consumer Survey Report.

Of the consumers who were surveyed, 25% said they will spend more versus past years, and 21% said they will spend less. More than 60% will spend $100 or less this Labor Day holiday, and about 30% will spend more than $100.

Expected impact from inflation, as well as COVID, this Labor Day are at their lowest points to-date, the report said. Compared to previous holidays this year, the number of consumers who are expecting inflation to impact their Labor Day shopping and celebration plans have come down gradually.

Only 51% of consumers expect a moderate or significant impact due to inflation for Labor Day. The holiday that saw the highest percentage of consumers who said they expected inflation to have an impact on their shopping and celebration plans was Easter at 75%, according to the report. The numbers came down a little for Mother’s Day (62%), and then held steady for Memorial Day (62%) and Father’s Day (61%).

The numbers due to COVID are even lower. At Easter time, 39% of consumers expected a moderate to significant impact on shopping and celebration plans due to the pandemic. For Labor Day, only 18% of consumers said they are expecting an impact due to COVID.

Grocery stores will be the most popular place to shop for food for the holiday. The majority of shoppers (88%) will make their purchases in-person, and fewer than 1 in 5 (17%) plan to shop online.

Most consumers celebrating Labor Day are expecting to make grocery item purchases such as: meat or seafood (58%); snacks (54%); fruits or vegetables (48%); side dishes (44%), alcoholic beverages (43%); and paper and disposable products (41%).

A third of consumers (34%) plan to shop during Labor Day Weekend sales events, more than half (52%) will consider it, and only 14% said they won’t shop for the sales. Inflation will impact many shoppers’ decisions, with 45% saying they will compare prices to find the best deal, 31% saying they plan to stock up on sale items, and 29% saying they will pass up a good deal if it’s not a necessity.

 

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