It’s just after Labor Day, and already some stores are displaying Christmas trees, often before even stocking Halloween treats.

While it may seem premature for retailers to jump into the holiday season right after Back-to-School shopping, they’re actually responding to consumer behavior.

According to Bankrate, nearly half (48%) of holiday shoppers surveyed plan to start their holiday shopping before Halloween.

Why the early start to holiday shopping?

Although many people wish the holiday shopping period wouldn’t begin so soon, retailers are catering to customer demand, explains Ted Rossman, a senior industry analyst at Bankrate.

“The holiday season has certainly been stretched out,” Rossman told YSL News, noting that these trends align with Bankrate’s observations over the last few years.

“Around one in eight early shoppers have already begun their holiday purchases, and another eighth plans to start this month. October has unofficially become the start of the holiday shopping season,” he noted.

Major sales events like Amazon Prime Days, Target Circle Week, and Walmart’s Holiday Deals are prompting this early surge in shopping. This trend began during the pandemic when Amazon shifted Prime Day from summer to fall, according to Rossman.

Recently, Amazon announced another Prime Day in October, although the specific date is yet to be confirmed.

Rossman also mentioned that earlier concerns about supply chain delays during the pandemic drove shoppers to start purchasing much sooner to avoid missing out. Even though supply chains have improved, these shopping patterns have continued.

“People are also looking to manage their cash flow better,” Rossman added. “With inflation on the rise, shoppers are more mindful of their spending, and spreading out their purchases can help them budget more effectively.”

What will holiday spending look like this year?

Economic factors are influencing holiday spending plans this year.

A new survey indicates that 24% of respondents plan to spend more this holiday season compared to last year. Meanwhile, one-third of shoppers (34%) reported that inflation will impact their shopping habits this year.

Here are additional insights from the survey:

• 33% of holiday shoppers expect to spend less than in 2023.
• 43% anticipate spending the same amount as last year.
• Younger shoppers are likely to increase their spending more than older demographics. Specifically, 40% of Gen Z (ages 18 to 27) and 31% of Millennials (ages 28 to 43) plan to spend more, compared to 19% of Gen Xers (ages 44 to 59) and 15% of Baby Boomers (ages 60 to 78).
• Nearing half of respondents (48%) intend to start their holiday shopping before the end of October, with 12% starting before August 31, and 13% in September. 24% will wait until October, 37% until November, and 15% until December.
• Overall, one-third (34%) indicated that inflation will affect their shopping approach this year.
• 28% expressed anxiety about the costs associated with holiday shopping.
• Nearly 30% (29%) plan to allocate specific funds for their holiday expenditures, while over 25% (28%) foresee holiday shopping straining their finances. Additionally, 16% feel pressured to spend beyond their means.

How will consumers approach holiday shopping this year?

• 42% of holiday shoppers plan to shop online, while 23% prefer in-store shopping.
• Debit cards are expected to surpass credit cards as the predominant payment method this season (58% versus 54%), with 48% opting for cash and 11% using buy now, pay later services.
• Approximately 27% of consumers anticipate incurring debt during the holiday season, whether through credit cards or buy now, pay later options.
• 36% of parents with children under 18 expect to take on debt this holiday season, compared to 24% of those with adult children and 25% of non-parents.

Holiday shopping tips

Review return policies: Many retailers are extending their return periods, allowing gifts to be returned post-holiday. Several retailers have updated these policies starting in October to accommodate the early shoppers, according to Rossman. Be cautious, though, as the return window may not apply if you shop too early. Always check directly with the retailer, and consider your credit card’s return protection benefits, if available.

Price Matching: If you purchase an item only to find it at a lower price later or at a different store, retailers may offer a price match. However, be sure to read the details; many will not match prices for special promotions or events like Black Friday, according to Rossman. Some credit cards provide price protection as well, but this benefit has diminished with many card issuers, he noted.

Stack Discounts: Take advantage of a store’s promotions by pairing them with a rewards credit card and using digital coupons or a browser extension that finds deals, as suggested by Rossman.

Spread Out Your Purchases and Budget: Plan a budget and create a gift list, utilizing technological tools for price comparisons, Rossman advises. Then, “save a portion of your paycheck each time until the holidays, so you won’t incur debt and can ensure you have allocated funds for this.”

Betty Lin-Fisher serves as a consumer reporter for YSL News. You can  follow her on X, Facebook, or Instagram @blinfisher.