(WANE) — With the holiday season nearly in full swing, the National Retail Federation has offered how the prices may increase this holiday season.
Hoosiers and those across the country are expected to face a 3 to 4% increase in holiday spending this year compared to last year according to the National Retail Federation (NRF). With this increase, it brings holiday spending to more than $957 billion. This increase is compared closely to the average annual holiday increase of 3.6% that happened from 2010 to 2019.
Rod Runyon a professor at the White Lodging-J.W. Marriott, Jr. School of Hospitality and Tourism Management at Purdue University said in an interview with the Associated Press many factors play into this increase.
“The first one is probably the fact that prices are going up. If online you can get a better deal, that’s great,” said Runyon a professor at the White Lodging-J.W. Marriott, Jr. School of Hospitality and Tourism Management at Purdue University. “Second part of that is logistics, and people aren’t necessarily sure when they go into a store if the selection is going to be there, so they might as well shop from home. And maybe the third thing is the proliferation of retail theft that we’ve been hearing about.”
Many brick-and-mortar stores are closing their doors after struggling with in-store theft rates rising. A Forbes article outlines that 2023 data shows theft rates are down, but an uptick has been seen in retail thefts in large cities, with higher-priced items being stolen. Forbes also connected the possible rise with the fact that many who shoplift are often unreported or never caught. With these rates on the rise in urban areas, it’s causing costs to go up making products harder to find in stores.
The NRF is predicting that online shopping will continue to rise this year, by another 7-9%, between $273.7 billion and $278.8 billion, which is up $255.8 billion from last year.
How can you prepare for the holiday spending?
In a report done by Equifax, the most recommended tip is to prepare a budget well before the holiday season. Equifax recommends making a detailed list of every possible expense to get a true idea of what you may be spending this holiday season down to the bows for presents and the stamps for holiday cards. Equifax also suggests avoiding the use of credit cards, creating a savings plan and getting crafty when you can.
Overall you better prepare your wallets this holiday season because, in the latest NRF holiday survey, 43% of holiday shoppers have already begun making purchases.