Thursday, December 26, 2024

Consumer Headlines: Christmas tipping, toy sales decline, and the shift to online shopping

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ROCHESTER, N.Y. — Christmas tipping is on the minds of many as the holiday season approaches. If you work in the service industry, there is both good and bad news.

The bad news is that there has been a steady decline in tipping over the past few years. However, the good news is that holiday tipping has not declined.

According to Bankrate, those we interact with most often, such as housekeepers or babysitters, are usually tipped. The average tip remains at $50, a figure unchanged for the past three years. Unfortunately, inflation has reduced its buying power by nearly $6.

Despite the overall decline in the number of adults who say they tip, which has fallen by 8%, people continue to tip those whose services enrich their lives and those of their children during the holidays.

In other news, the toy industry is experiencing a decline in holiday sales for the second consecutive year. Surprisingly, a classic toy from 1949, Legos, is still selling well, with a revenue jump of 13% this year. While other high-tech toys struggle, Legos remain popular among consumers.

The shift to online shopping is changing how we purchase these toys. This year, retailers are hiring an estimated 520,000 seasonal workers, a decrease of 44,000 from last year. According to Challenger, Gray & Christmas, 76% of American shoppers bought at least half of their gifts online. For every new e-commerce center opening, about 1,000 local retail jobs disappear.

There is a silver lining: while retail jobs are lost, other jobs are created. Online shopping is projected to create 450,000 jobs in the U.S. by 2026.

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