Navigating Economic Challenges: Consumers Set to Break Spending Records During Holiday Sales Events
This year’s Black Friday and Cyber Monday are anticipated to witness unprecedented consumer spending, with average expenditures reaching $567, marking a 13 percent increase from the previous year. These figures emerge from Deloitte’s annual survey, setting a new high as shoppers navigate through the complexities of heightened prices and rising interest rates.
Despite these economic challenges, about 84 percent of consumers are optimistic about adhering to their pre-determined budgets, established back in September. To ensure they remain within financial boundaries, a significant number of shoppers are focusing on capitalizing on the deals available during Black Friday and Cyber Monday, with four out of 10 aiming to complete their holiday shopping within this window.
Stephen Rogers, managing director at Deloitte’s Consumer Industry Center, observes that consumers are adept at balancing their budgets to accommodate the festive season’s demands. The tendency to seek value has already been evident, with around 41 percent of survey respondents engaging in October’s holiday gift shopping promotions, a strategy expected to reduce their spending by 25 percent during the upcoming sales days compared to those who didn’t shop early.
The survey, which polled 1,200 individuals between October 19 and 25, highlights a shifting landscape for retailers. Brands like Target Corp. have experienced a downturn in comparable sales, particularly in discretionary categories, reflecting changing consumer priorities. Macy’s Inc. also noted a dip in same-store sales, as spending shifts from goods to experiences.
Moreover, the National Retail Federation forecasts a substantial turnout of approximately 182 million shoppers from Thanksgiving Day through Cyber Monday, the highest since 2017. However, they also predict a slowdown in the US holiday sales growth, attributing it to the prevailing economic challenges.