No Grinches here. Ohioans expected to spend more this holiday shopping season

Posted by Admin December 7, 2024 Shopping

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Making a list and checking it twice this holiday season? In Ohio, you’re in good company.

The Alpaugh Family Economics Center at the University of Cincinnati released its forecast for holiday spending in the state, and it’s predicting an increase from last year.

The study forecasts a 1.1% increase in Ohio holiday retail spending compared to 2023.

“The Economics Center estimates holiday relevant retail revenues of $30.4 billion statewide in 2024 during the November to January holiday season,” according to the report. “This compares to nearly $30.1 billion in holiday relevant retail revenues during the 2023 holiday season.”

The expected increase in Ohio comes in lower than nationwide forecasts, which range from a 2.3% to 7% bump.

The Cincinnati study didn’t include all retail sales. For example, motor vehicles, vehicle parts, gas stations, food services, and arts, entertainment and recreation sales were excluded.

The study did include furniture and home furnishing, electronics and appliances, building materials and garden equipment, food and beverage stores, health and personal care, clothing and accessories, sporting goods, hobbies, books, music, general merchandise and other miscellaneous stores.

Why are Ohioans spending more on holiday retail this year?

Many factors may be at play when it comes to analyzing the increase, according to the report, as some indicators point to economic recovery since the COVID-19 pandemic.

“Employment and wages in Ohio have exceeded pre-pandemic levels, but consumer confidence remains below levels experienced prior to the COVID-19 pandemic,” according to the report. “Inflation has moderated after sharp increases in 2021 and 2022 with the Federal Reserve cutting interest rates twice in 2024. Debt-to-income ratios have been marginally increasing over the past year, while home prices have continued to increase at a steady rate.”

How will Ohio metro regions perform in holiday retail sales?

The 2023 report analyzed nine metro regions and their holiday retail sales. In 2024, all nine are expected to see an increase. The three largest metros, Columbus, Cincinnati and Cleveland, are expected to account for more than half of the sales.

Here’s a look at projected holiday retail sales in the nine metro regions:

Akron: $1.8 million, 1.4% increase
Cincinnati: $4.9 million, 0.6% increase
Cleveland: $5.3 million, 0.4% increase
Columbus: $6.5 million, 5.3% increase
Dayton: $2 million, 1.7% increase
Lima: $271,000, 2.7% increase
Mansfield: $294,000, 7.3% increase
Toledo: $1.5 million, 0.2% increase
Youngstown: $1 million, 4.3% increase

How much will consumers spend this holiday season?

The National Retail Federation’s latest consumer survey estimated that spending this winter holiday season will hit a record $902 per person — about $25 more per person than last year.

The annual survey, conducted by Prosper Insights & Analytics, asked 8,191 adult consumers about their holiday shopping plans. It was conducted Oct. 1-7 and has a margin of error of plus or minus 1.1 percentage points.

“The winter holidays are a treasured time for Americans, and they are prioritizing spending on family this holiday season,” NRF Vice President of Industry and Consumer Insights Katherine Cullen said in a prepared statement.

The retail industry organization said most of that money —$641 — will be spent on gifts for family, friends and coworkers.

It also said that 92% of U.S. adults plan to celebrate winter holidays such as Christmas, Hanukkah or Kwanzaa this year.