US consumer spending for Easter is expected to rise about 5% this year as Americans snap up candy and gifts to celebrate despite concerns around high inflation and economic uncertainty, a National Retail Federation report showed on Tuesday.
Shoppers are expected to spend around $23.6 billion this year, compared with $22.4 billion estimated last year, the trade body’s survey showed, with discount stores once again poised to be the top destination for Easter shopping.
Prices of eggs, traditionally used for Easter decor and games, have nearly doubled from last year as avian influenza wiped out millions of hens and led to a shortage of eggs in February.
Retail bellwether Walmart left out eggs from its yearly Easter promotional meal kit, shared late last month at a lower price than 2024.
President Donald Trump’s sweeping tariffs on several trade partners have also raised fears of a recession, casting a pall on consumer sentiment in the United States.
However, retailers such as Target and dollar stores that enjoyed an upbeat December quarter thanks to robust Christmas spending have said consumers are expected to shop for Easter with similar interest.
“As we witnessed throughout the pandemic, holidays such as Easter are especially meaningful for Americans during times of uncertainty. And we are continuing to see that trend as consumers prioritize their Easter celebrations this year,” said Katherine Cullen, NRF vice president of industry and consumer insights.
“From other holidays NRF tracks, we know that consumers who are feeling constrained by higher prices or the economy may cut back in other areas, look to sales or find less costly substitutes in order to preserve their traditional celebrations.”
NRF’s forecast said a majority of consumers were expected to shop inspired by tradition to buy Easter-related items, while 36% were also expected to be influenced by sales and promotions.
Candy, food and gifts are likely to be at the top of shopping lists this Easter, with consumers seen spending a total of $7.4 billion on food, $3.8 billion on gifts and $3.3 billion on candy, the report said.
Credit: Source link
