What's Happening?
A survey conducted by Invoice Home reveals that 37% of U.S. consumers prioritize buying gifts over maintaining a credit card balance during the holiday season. Additionally, 25% plan to use Buy Now, Pay Later (BNPL) services to manage holiday expenses. The survey highlights consumer preferences for incentives such as free shipping, loyalty points, and discounts, which influence purchasing decisions. Rising prices and increased return costs are major deterrents for holiday shopping, with 50% of respondents citing price hikes as a reason to avoid certain retailers.
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Why It's Important?
The findings underscore the financial strain consumers face during the holiday season, with many willing to incur debt to fulfill gifting obligations. The reliance on BNPL services indicates a shift in consumer behavior towards flexible payment options, which could impact traditional credit card usage. Retailers may need to adapt their strategies to accommodate these preferences, offering incentives that align with consumer expectations. Understanding these trends is crucial for businesses aiming to maximize holiday sales while addressing consumer financial concerns.
