According to a new report from online payment processor Klarna, consumers in the US are unlikely to be deterred by rising costs during the holiday season.
According to Klarna’s data, 68 percent of them said they plan to spend more or the same on Christmas shopping this year as they did last year.
In comparison, 24 percent of respondents said they had tightened their budget and wanted to spend less, while 31 percent said they wanted to spend more.
The report’s findings differ from previous expectations by retailers for peak-season shopping as rising costs continue to impact households across the region.
Fashion and apparel remains the most popular category
Noting the stark contrast in behavior, Raji Behal, Global Head of Partner Success at Klarna, summarized: “The common denominator is that the majority of people are much more savvy about the holiday shopping season.”
“The vast majority of holiday shoppers are focused on budget-friendly products, discounts, and better shopping this season.”
This is evident in the responses of 66 percent of consumers who said they plan to stay on budget this year, up from 14 percent last year.
Respondents also expressed an interest in more flexible payment options: 55 percent said they will actively seek such options.
This trend is particularly evident among the younger generations, with 72 percent of respondents being Millennials and 58 percent being Gen Z.
The report also looked at rising interest in discounters, the return to in-store shopping, demand for video shopping content and the shift from gifts to essential products.
Despite this, it seems that fashion and apparel will remain the most popular shopping category in the coming season, both online and in stores. Consumer favorite brands include Calvin Klein, Victoria’s Secret and H&M.
This translated article originally appeared on FashionUnited.uk.