Despite mounting economic pressures, holiday shoppers say they plan to shell out more money on Black Friday and Cyber Monday sales this year than last year.
It is according to a recent examination from accounting firm Deloitte, showing that consumers plan to spend an average of $567 between Black Friday and Cyber Monday this holiday season, or 13% more than they spent during the four-day shopping extravaganza in 2022.
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Consumers have increased their holiday shopping budgets, as have retailers this year increased sales and deepened discounts to attract households squeezed by inflation and rising credit card interest rates.
“Cyber Week is off to a strong start, with Thanksgiving generating a record $5.6 billion in online spending as consumers took advantage of strong discounts and continued their shopping plans, virtually,” said Vivek Pandya, principal analyst, Adobe Digital Insights.
Deloitte surveyed 1,200 consumers between October 19 and October 25.
Despite the early surge in holiday spending, consumers are feeling strapped for cash as their savings dwindle and their. And although forecasters predict many necessities such as food and rent remain significantly more expensive than they were before the pandemic.
These cost pressures have left consumers “much more cautious about spending,” Neil Saunders, retail analyst at GlobalData Retail, told CBS MoneyWatch. At the same time. many shoppers are also “more receptive to good deals,” making them more likely to spend during Black Friday, Saunders said.
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. This holiday season, toys, games and hobby equipment are on track to see their best deals since 2020, according to a Reuters analysis of federal work data. Men’s suits, outerwear, sports coats, women’s dresses and audio gear are 8% to 14% cheaper compared to pre-pandemic levels, the analysis shows.
According to Adobe’s discretion toys will be marked down by an average of 35% this year compared to 22% a year ago, while electronics prices will be cut by 30%. compared to 27% in the same period in 2022.
More than half of shoppers plan to take full advantage of store deals during Black Friday and Cyber Monday, with four in 10 consumers planning to complete all of their seasonal shopping during the four-day sales window, according to Deloitte’s survey. In the meantime 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.
Shoppers earmark more of their money for virtual holiday shopping rather than offers in physical stores, Deloitte’s study shows.
According to the poll, shoppers plan to spend $169 on online purchases this Black Friday, up 40% from $121 in 2019. By comparison, consumers say they plan to spend $138 on in-store purchases on Black Friday this year.
– The Associated Press contributed reporting