Half of holiday budgets are expected to be spent over the Thanksgiving shopping weekend.
A new survey from Deloitte reveals what retailers can expect from shoppers between Black Friday and Cyber Monday.
Overall, consumers are expected to spend an average of $500 during the Black Friday Cyber Monday (BFCM) period, up 12% from last year, according to the study. Spending is expected to rise among all income groups, with lower-income (less than $50,000 a year) households planning to increase their spending by 19% to $320. Higher-income (more than $100,000 per year) earners plan to increase their spending 4% to $650.
In other findings, participation in Black Friday and Cyber Monday is on the rise, up to 64% and 56%, respectively. Black Friday shoppers are expected to spend $205 on average, up from $190 in 2021. Cyber Monday shoppers are expected to spend $218 on average, up from $175 last year.
With deal a priority this year, shoppers will spend half of their holiday budgets over the BFCM period.
The Deloitte study found that BFCM events are becoming more channel agnostic. While Cyber Monday continues to capture a significant share of the online shopping budget, 69% of consumers say retailers offer comparable deals online and in-store during the holiday weekend. Notably, the share of online and in-store sales for Black Friday is nearly the same at 16% and 17%, as a result of better price transparency.
While preference for online retailers remains flat at 54%, mass merchants (63%, up from 57% in 2021) and department stores (35%, up from 29% in 2021) regain lost share as consumers seek out traditional BFCM promotions.
• Nearly half of BFCM shoppers(48%) plan to use credit cards to stretch their holiday budgets, up from 35% in 2021. Credit use is on the rise among all income groups – lower-income families (50% versus 27% in 2021), middle-income families (45% versus 38% in 2021), and higher-income earners (49% versus 45% in 2021).
• Buy now, pay later is also on the rise: 37% of BFCM shoppers plan to take advantage of this option to make the most of holiday gift-giving.
• Among shoppers planning to spend during the holiday shopping weekend, 43% say they will delay large purchases.
Shoppers are sticking to their initial holiday spending plans: 81% plan to spend the same or more compared to two months ago. Nearly half (48%) of those planning to spend more will do so due to higher prices, up from 41% last year.
“With half of holiday budgets expected to be spent over the Thanksgiving shopping weekend, it’s a critical period for retailers,” said Rod Sides. global leader of Deloitte Insights and vice chair, U.S. retail, wholesale and distribution and consumer products. “Consumers from every income level are looking to maximize their holiday budgets, therefore seeing value in the promotions set to last throughout the week. Retailers who can differentiate themselves through return policies, warranties and other perks can entice consumers and result in a successful a holiday season.”