Deloitte: Deal-focused shoppers to send Black Friday-Cyber Monday spending to new highs
The upcoming holiday weekend will get a big boost from deal-focused shoppers unhappy with the prices they’ve seen so far — including during retailers' highly-promoted October sales events.
Nearly half (45%) of consumers say they have already experienced higher prices for holiday items this season, and 32% say retailers are discounting less, according to Deloitte's “2024 Black Friday-Cyber Monday Survey.” As a result, shoppers plan to spend more than half (56%) of their holiday budgets during the promotional week to get the most bang for their holiday buck, up from 47% in 2023.
Most (80%) of those surveyed plan to shop during the holiday weekend. While participation is expected to be similar to 2023, spending is expected to reach a new high of $650 (up from 15% from 2023). All demographics and income levels plan to spend more, especially those making less than $50K or more than $200K and Gen Z shoppers.
To stretch their holiday weekend budgets, 53% of respondents plan to use credit cards (up from 35% in 2023), and 29% will leverage buy now pay later services. Overall financing and credit card usage are highest among millennials (72% for each).
Despite heightened interest in October promotional events, only 32% of those who shopped during that time period say it offered the best deals, compared to 49% who said the same in 2023, opening up an opportunity for retailers to attract value-seeking shoppers during the holiday weekend. This is compounded by nearly half (47%) of respondents who say the best deals of the season are on Black Friday.
Other findings from the survey are below.
- Nearly half (47%) of respondents who say the best deals of the season are on Black Friday. Surveyed consumers plan to spend $195 online and $150 in-store on Black Friday on average.
- Two-thirds (66%) of shoppers surveyed plan to shop on Black Friday, driving participation back up to pre-pandemic levels and recovering from a low of 56% in 2021.
- Shoppers are filling their online shopping carts as doorbuster deals slowly lose appeal. This year, only a quarter of consumers surveyed plan to shop in-store to take advantage of doorbusters.
- All gift categories are expected to see increased participation as consumers seek discounts. Survey respondents plan to purchase clothing and accessories (77%), electronics and accessories (57%), and toys and hobbies (54%).
- Health & wellness and pet products are expected to see double-digit participation – 34% and 29%, respectively.
"This year we have a shorter holiday shopping season with the late Thanksgiving,” Said Brian McCarthy, principal, Deloitte Consulting LLP. “Combined with a deal-focused consumer, we can expect to see holiday shoppers spend big during Black Friday-Cyber Monday promotions as they seek to close out their holiday shopping lists in a shorter timeframe. We continue to see the week evolve as a hybrid event, but online retailers are taking the top spot for the preferred format for the first time among those surveyed. This reinforces the importance of offering a consistent omnichannel experience to draw in consumers whether they plan to shop in-store, online, or both."
Deloitte's "2024 Black Friday-Cyber Monday Survey" is based on a survey of 1,200 consumers fielded between Oct. 16 and Oct. 24.
