Easter spending estimated to be $22.4 billion, down from 2023

Consumers are expected to pull back spending for the Easter holiday doling out $22.4 billion on baskets, cards, spring fashion, flowers and holiday foods, according to the National Retail Federation annual survey completed by Prosper Insights & Analytics.

Cumulative holiday spending is expected to be down 6.66% from the $24 billion reported a year ago. NRF said spending this year will be the second highest on record after 2023 levels.

“Each year, Americans look forward to celebrating Easter and the renewal of time and traditions with loved ones,” NRF CEO Matthew Shay said. “Retailers understand the importance of this holiday and are ready to help their customers find the items they want and need at affordable prices.”

NRF reports that 81% of consumers plan to celebrate this year, like last year. The average spend per household is $177.06, down from $192.01 reported in 2023.

Food is the biggest spending category for consumers around the Easter holiday with an expected spending of $7.3 billion which also comes as many retailers have advertised lowering food prices around the traditional Easter Sunday meal. The retailers have made price concessions for the past three years dating back to the highest levels of inflation. The survey found that 89% of respondents said they would purchase food for the holiday dinner.

Clothing is the second highest spending category with a total spend of $3.5 billion from 49% of the survey respondents. Candy is another category that 89% of consumers plan to spend this year for a total of $3.1 billion. Consumers will spend an estimated $1.6 billion on flowers. At lower spending levels, 48% of respondents plan to purchase Easter decorations and 62% said they plan to purchase gifts this year.

NRF reported households with children are more likely to celebrate Easter this year. The survey found 85% of consumers ages 18 to 34 years old will celebrate the holiday. That was followed by 80% of consumers between the ages of 35 and 54. Consumers aged 55 or older had the lowest celebration intentions at 74%.

Also 57% of consumers regardless of age said they plan to celebrate with family or friends. For consumers between the ages of 18 and 34 that rose to 62%. The survey found that 54% of all respondents plan to cook a holiday meal and 49% plan to attend church services. About 4 in 10 plan to celebrate with an egg hunt. Around 18% will go to restaurants. Other planned activities included 30% planning to shop online and 11% planning to see a movie.

The Consumer Price Index showed consumer prices overall rose 3.2% annually in February, up from 3.1% in January and consumer sentiment reported this month indicates a more cautious optimism about the economy. The Michigan Sentiment Index indicated consumers expect inflation to further cool with price increases slowing through the summer. Consumer spending remains elevated by 1.5% year over year, according to the March report from the Census Bureau. NRF reported retail sales slowed in March, but spending was still higher than at the same time last year.

NRF’s calculation of retail sales – which excludes automobile dealers, gasoline stations and restaurants to focus on core retail – showed March was down 0.5% from February but was up 4.6% year over year.

“Continued easing of inflation and the overall strength of the job market and wages are keeping the fundamentals of the consumer economy strong and should support their ability to spend on household priorities through 2023,” Shay said.