Shopping Around Thanksgiving Holiday Will Be Strong For Retailers As Resilient Consumers Find Ways To Keep The Season Fun And Bright
New York, November 21, 2022 /PR Newswire/ —
- consumers on average $500 During Black Friday and Cyber Monday (BFCM) shopping events (Thursday, November 24th – Monday, November 28th), 12% up from last year.
- During the holiday weekends, shoppers will use more credit payment options such as: Credit cards (48%), buy now, pay later (37%) To stretch your holiday budget.
- Seeking deals and promotions, shoppers spend half of one’s vacation budget During BFCM.
- 8 in 10 holiday shoppers plan to shop During BFCM events (against 71% in 2021).
Why this matters
Inflation weighs heavily on the spirit of the season as shoppers seek ways to spice up the holidays. While a consumer creates a gift list and he checks it twice, Deloitte’s “Black Friday 2022 – Cyber Monday Survey‘ examines what retailers can expect from shoppers between Thanksgiving and Cyber Monday.conducted online October 19-28the report surveyed 1,200 adults aged 18 and over who were planning to buy holiday gifts.
Thanksgiving Spending to Inspire Joy in Retailers
Despite continued inflationary pressures, consumers are opening their wallets to make the season fun and bright for family and friends. Shoppers plan to spend half of their vacation budgets during BFCM, with all income groups expected to spend more year-over-year.
- Shoppers are sticking to their spending plans for the first holiday season, with 81% planning to spend the same or more than they did two months ago. Nearly half (48%) of respondents who plan to spend more because of higher prices will do so, up from 41% last year.
- Shopping has increased during BFCM and is on par with pre-pandemic levels. 80% of consumers plan to shop during his five-day holiday period, up from 71% in 2021, compared to 79% in 2019. 86% of Gen Z and 89% of millennials plan to spend during this period.
- Spending is set to increase across income groups. Low-income person (person with low income) $50,000 2020) will see the most spending growth in the five days, up 19% year-over-year $320In contrast, high-income earners $100,000 annual) increase spending by 4% $650.
Consumers are turning to credit to stretch their vacation budgets
With prices rising, consumers are increasingly relying on credit to increase their holiday budgets. That’s because his third (33%) of BFCM shoppers are worried about upcoming payments, up from his 26% in 2021.
- Nearly half (48%) of BFCM shoppers plan to use credit cards to increase their holiday budgets, up from 35% in 2021. 2021), middle-income (45% vs. 38% in 2021), and high-income (49% vs. 45% in 2021).
- Buy Now Pay Later (BNPL) is also on the rise. His 37% of BFCM shoppers plan to take advantage of this option to get the most out of their holiday gifts.
- 43% of shoppers who plan to shop over the holiday weekend say they are delaying large purchases.
“Inflation continues to affect consumers on all fronts, but consumers don’t want it to dampen the holiday spirit. Consumers are willing to do whatever it takes to celebrate the season.” Holiday weekend promotion participation and spending is expected to increase this year as retailers striving to build consumer loyalty during this challenging time will be able to weather the new year well. increase.”
— Nick HandrinosVice Chairman, Deloitte Consulting LLP, and a leader in US retail, wholesale, distribution, and consumer products
Consumers add deals to their holiday wish lists
Economic uncertainty continued to push the holiday season forward, encouraging early bargain hunting and buying. However, Black Friday and Cyber Monday continue to make up a significant portion of shopping budgets as inflation drives consumer demand for deals.
- Consumers are adapting to an uncertain environment by shopping early and looking for deals. By the end of October, shoppers had spent almost a quarter (23%) of their holiday budgets.
- More than half of consumers (57%) say retailers are offering the same or higher discounts than last year, and 87% of shoppers have already bought promotional gifts.
- Participation rates for Black Friday and Cyber Monday are on the rise, up to 64% and 56% respectively. Black Friday shoppers $205 on average, $190 In 2021, Cyber Monday shoppers will: $218 on average, $175 last year.
- BFCM events are becoming channel independent. Cyber Monday continues to capture a significant share of online shopping budgets, but 69% of consumers say retailers offer comparable deals online and in stores over the holiday weekend. For example, the share of online and in-store sales on Black Friday is about the same at 16% and 17% as a result of greater price transparency.
- Online retailer preference remains flat at 54%, but mass retailers (63%, up from 57% in 2021) and department stores (35%, up from 29% in 2021) report that is regaining its lost share as it seeks
“It’s a critical time for retailers as half of their holiday budgets are expected to be spent on the Thanksgiving shopping weekend. Consumers at all income levels are looking to make the most of their holiday budgets. We see value in promotions set up throughout the week: while Black Friday deals have traditionally been in-store, the event is becoming channel-agnostic, with retailers reaching out both in-store and online. Retailers that can differentiate themselves through return policies, warranties, and other perks will attract consumers and result in a successful holiday season.”
— rod sideGlobal Leader of Deloitte Insights and Vice Chairman of U.S. Retail, Wholesale, Distribution and Consumer Products
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