Despite mounting financial pressures, holiday shoppers say they are planning to shell out more money on Black Friday and Cyber Monday sales this year than last.
That’s according to a recent survey from auditing firm Deloitte that shows consumers plan to spend an average of $567 between Black Friday and Cyber Monday this holiday season, or 13% more than they spent during the four-day shopping extravaganza in 2022.
Consumers have expanded their holiday shopping budgets, with retailers offering increased sales and deeper discounts to attract households affected by inflation and rising credit card rates.
“Cyber Week is off to a strong start, with Thanksgiving driving a record $5.6 billion in online spend as consumers took advantage of strong discounts and continued their shopping plans, virtually,” said Vivek Pandya, lead analyst at Adobe Digital Insights.
A Deloitte survey of 1,200 consumers conducted between October 19 and October 25 revealed this early rise in holiday spending. However, despite the uptick in spending, consumers are experiencing financial strain as their savings decrease, and credit card debt rises. The forecast for easing inflation may not immediately alleviate financial pressure, especially as necessities like food and rent remain notably more expensive than pre-pandemic levels. Despite mounting financial
Neil Saunders, a retail analyst at GlobalData Retail, highlighted that consumers are more cautious about spending due to these cost pressures. However, they are also more receptive to bargains, increasing the likelihood of spending during events like Black Friday.
Both the number of Black Friday shoppers and the size of their budgets are growing, as retailers reduce prices to lows not seen in years. This holiday season, toys, games and hobby gear are on track to see their best bargains since 2020, according to a Reuters analysis of federal labor data. Men’s suits, outerwear, sports coats, women’s dresses and audio equipment are 8% to 14% cheaper compared with pre-pandemic levels, the analysis shows.