As inflation continues to rise, consumers are becoming more frugal in their holiday food spending, shifting away from dining out at restaurants towards more cost-effective grocery alternatives.
By the numbers
Research from PYMNTS’ recent study “New Reality Check: The Paycheck-To-Paycheck Report — The Holiday Shopping Edition,” created in collaboration with LendingClub, finds that 38 percent of consumers expect to spend more on groceries this holiday season than they did in 2021. In contrast, only 22 percent said the same about restaurant purchases.
Meanwhile, only 26 percent reported that they expect to spend less on groceries, while a slightly higher 29 percent said they would spend less on restaurant dining this season.
The data in action
Some retailers are targeting their holiday spending with special product drops, noting consumers’ demand for at-home options. Take, for instance, Target, the country’s third-largest retail chain.
“Given that the gift-giving season is underway, and our guests are turning to Target more and more for their food and beverage needs, it’s an ideal time for our recently announced partnership with British retailer, Marks & Spencer, who’s collaborated with us to offer a limited-time assortment of gourmet premium food and chocolates that’s sure to be perfect gifting solution this holiday season,” Chief Growth Officer Christina Hennington told investors on a call Wednesday (November 16) discussing the company’s third-quarter results.
Walmart, the world’s largest grocer, is also going after that holiday food spending.
“As you would expect, we’re helping families stretch their dollars as we head into the holidays,” Chief Executive Officer (CEO), Doug McMillon told analysts on a call Tuesday (November 15) discussing the company’s Q3 earnings.
“The Walmart US team has set the retail prices for a typical Thanksgiving meal the same as last year. We’re removing inflation on a basket of traditional Thanksgiving food items, including whole turkeys for under a dollar per pound.