Online Shopping Dominates Holiday Sales Results so Far

"Girl math" is Back. Consumers are Shopping Earlier to Save More on Christmas Day

The resurgence of "Girl math" is a notable phenomenon this holiday season, shedding light on evolving seasonal spending patterns adopted by consumers.

"Girl math" is Back. Consumers are Shopping Earlier to Save More on Christmas Day

TikTok users suggest that purchasing gifts months ahead of Christmas renders them practically "free" by December. Those who indulged during Cyber Week are seen as technically saving more for Christmas day.

"Girl math" is a viral TikTok trend focused on personal finance, showcasing how female shoppers rationalize their spending habits through mental gymnastics to maximize happiness. However, critics argue that the term may perpetuate stereotypes about women's numerical and spending abilities.

Commencing the 2023 holiday shopping season, the reappearance of girl math may indicate that consumers feel a financial strain but are unable to resist shopping. Despite stabilized inflation, persistently high prices, and a sense of financial burden among over half of holiday shoppers, the desire to celebrate the holiday season remains strong.

Experts suggest that shoppers may be employing girl math to justify their purchases amid rising costs. The extended 2023 U.S. holiday season, starting before Halloween, reflects a shift in consumer behavior, with McKinsey & Company reporting that 50% of holiday shopping commenced in October or earlier, and 40% in November.

Pre-holiday online spending hit a record high of $76.8 billion in October, surpassing the previous year by $4.3 billion. Projections indicate that total holiday spending in 2023 could reach $966.6 billion, with November's core retail sales already showing positive growth.

Despite consumer caution, a Morgan Stanley survey reveals that 61% plan to continue shopping from December 1 to Christmas day, anticipating better deals than those on Black Friday and Cyber Monday. Women, having boosted the economy during the summer, are expected to spend 11% more this year than in 2022.

The report by PwC suggests that women following the principles of girl math prioritize factors such as value, free returns, shipping, and convenience over the sticker price. 

On the flip side, celebrating the holidays with family may lead to increased expenses, with studies showing a 53% increase in spending for those staying with family this holiday season. 

When it comes to payment methods, credit cards remain popular, with 52.3% of Americans planning to use them for gift purchases. Alternative methods like "buy now, pay later" installment plans have gained traction, reaching a record high of $940 million in online purchases on Cyber Monday.

Consumers increasingly favor flexible payment methods like BNPL, allowing them to spread out payments over several months. From November 1-27, BNPL transactions amounted to $8.3 billion, potentially making it the biggest month on record for this payment method.