Easter spending expected to reach record $24B

Consumers are choosing stores like Dollar General to get their groceries

FOX Business correspondent Madison Alworth has the latest on the stores sales estimates on The Big Money Show.

Americans planning to celebrate Easter this year will shell out a record amount for the holiday as consumers lean into celebrations and anticipate higher prices as inflation persists, according to new data.

The National Retail Federation reported this week that more than 80% of U.S. consumers say they will celebrate Easter, and consumers expect to spend on average $192.01 each after factoring in purchases for items like new outfits, meals, candy, gifts and decorations.

The organization said Easter spending is expected to reach a new high of $24 billion, up from $20.8 billion last year and the previous record of $21.7 billion set in 2020.

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Consumers expect to spend the most on food ($7.3 billion) and plan to spend more on clothing ($4 billion) and gifts ($3.8 billion) this year than last. Candy sales are anticipated to reach $3.3 billion for the 2023 holiday.

Americans will spend a record $24 billion on Easter this year, including $3.3 billion on candy. (iStock / iStock)

While high inflation is certainly a factor for the increased spending on Easter, trends indicate Americans are making trade-offs to prioritize holiday celebrations even while their budgets are being squeezed.

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Katherine Cullen, NRF's senior director of industry and consumer insights, said retail spending was strong throughout the pandemic with help from stimulus funding, but Americans were also investing more into holiday celebrations to make them more meaningful given the uncertainty and stress in their lives.

Record spending for Easter celebrations list year is being partially driven by higher food prices. (iStock / iStock)

Cullen told FOX Business some of the growth in Easter spending this year is being driven by higher food costs, but one hypothesis for the record spending for the holiday is that consumers' stress over COVID-19 has been replaced.

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"A lot of consumers are not as worried or as locked down," she said. "But we are still seeing – even with some of the economic uncertainty going on – people are still really valuing the celebration."