Despite increasing financial pressures, holiday shoppers plan to spend more money on Black Friday and Cyber Monday sales this year than last year.
That’s according to a recent survey by accounting firm Deloitte, which shows consumers plan to spend an average of $567 between Black Friday and Cyber Monday this holiday season, up 13% more than during the four-day annual shopping extravaganza 2022.
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Consumers have increased their holiday shopping budgets as retailers increased sales and extended discounts this year to attract households hit by inflation and rising credit card fees.
“Cyber Week is off to a good start. Thanksgiving drove a record $5.6 billion in online spending as consumers took advantage of deep discounts and continued their shopping plans virtually,” said Vivek Pandya, principal analyst at Adobe Digital Insights.
Deloitte surveyed 1,200 consumers between October 19th and 25th.
Despite the early surge in holiday spending, consumers are feeling strapped for cash as their savings dwindle and their credit card debt grows. And although forecasters predict easing inflation will continue to slow, many essentials like food and rent remain significantly more expensive than before the pandemic.
These cost pressures have caused consumers to be “much more cautious about their spending,” Neil Saunders, retail analyst at GlobalData Retail, told CBS MoneyWatch. At the same time. Many shoppers are also “more receptive to bargains,” making them more likely to spend during Black Friday, Saunders said.
The best Black Friday deals in years
Both the number of Black Friday shoppers and the size of their budgets are growing as retailers slash prices to lows not seen in years. Toys, games and hobby gear are on track for their best bargains since 2020 this holiday season, according to a Portal analysis of federal jobs data. The analysis shows that men’s suits, outerwear, jackets, women’s dresses and audio equipment are 8% to 14% cheaper compared to pre-pandemic levels.
Adobe estimates that toys will be an average of 35% cheaper this year, compared to 22% a year ago, while electronics prices will be reduced by 30%. compared to 27% during the same period in 2022.
The best Black Friday deals and holiday shopping tips 02:46
According to Deloitte’s survey, more than half of shoppers plan to take full advantage of in-store deals on Black Friday and Cyber Monday, with four in 10 consumers planning to do all of their seasonal shopping during this four-day sales window. Meanwhile, 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.
As Deloitte’s survey shows, shoppers are spending more money on virtual holiday shopping than on bargains in brick-and-mortar stores.
According to the survey, shoppers plan to spend $169 on online purchases this Black Friday, a 40% increase from $121 in 2019. In comparison, consumers plan to spend $138 on in-store purchases on Black Friday this year.
– The Associated Press contributed reporting
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Elizabeth Napolitano
Originally posted 2023-11-25 10:08:25.