Holiday Shoppers Plan to Spend More on Black Friday and Cyber Monday Sales Despite Financial Pressures
Despite mounting financial pressures, holiday shoppers are gearing up to spend more money on Black Friday and Cyber Monday sales this year than last, according to a recent survey from auditing firm Deloitte. The survey reveals that consumers plan to spend an average of $567 between Black Friday and Cyber Monday this holiday season, marking a 13% increase from the four-day shopping extravaganza in 2022.
Retailers this year have increased sales and deepened discounts to attract households squeezed by inflation and rising credit card rates, prompting consumers to bump up their holiday shopping budgets. “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.
The survey, which polled 1,200 consumers, also highlights that despite the early rise in holiday spending, consumers are feeling strapped for cash as their savings dwindle and their credit card debt grows. Neil Saunders, a retail analyst at GlobalData Retail, noted that consumers are more cautious about spending due to cost pressures, but they are also more receptive to bargains. This increased receptivity to bargains is likely to drive spending during Black Friday.
Furthermore, both the number of Black Friday shoppers and their budgets are growing as retailers reduce prices to levels not seen in years. Toys, games, and hobby gear are expected to see their best bargains since 2020, according to a Reuters analysis of federal labor data. Additionally, data from the National Retail Federation shows that 182 million people are expected to shop between Thanksgiving Day and Cyber Monday this year, marking the highest turnout of holiday shoppers since 2017.
Deloitte’s survey also indicates that shoppers are allocating more of their budget for virtual holiday shopping, with a 40% increase in planned online purchases compared to in-store purchases this Black Friday. With these trends in mind, retailers are likely to see a surge in sales during the upcoming Black Friday and Cyber Monday sales events.
Sources:
– CBS MoneyWatch
– Deloitte
– Adobe Digital Insights
– Reuters
– National Retail Federation