Deloitte: Shoppers spend an average of $500 during the week of Black Friday

A quick dive:

• Despite general concerns about inflation, a Deloitte survey of 1,200 adults found that consumers will spend an average of $500 during the week of Black Friday and Cyber ​​Monday, up 12% from 2021.
• Just under half (48%) of shoppers plan to use credit cards to pay for holiday shopping, and more than a third (37%) plan to use “Buy Now, Pay Later” services, the survey found.
• The majority of respondents (87%) said they had already bought gifts this year while they were on sale.

Dive Insight:

Deloitte research shows that shoppers at all income levels are spending more this holiday season, but they’re also relying more on financing. Consumers making less than $50,000 plan to spend $320 between Black Friday and Cyber ​​Monday, up 19% from last year. Shoppers with incomes over $100,000 plan to spend $650 over the same period, up 4% from last year.

The report also notes that all consumers are relying more on credit cards this year. Half of low-income households plan to use credit cards to pay for holiday shopping, up from 27% last year. The share of middle-income households planning to use credit cards for holiday shopping rose from 38% in 2021 to 45% this year. For high-income earners, 49% plan to use credit cards this year, up from 45% in 2021.

“With half of holiday budgets expected to be spent on the Thanksgiving shopping weekend, this is a critical period for retailers. Consumers of all income levels are looking to maximize their holiday budgets, so they see value in promotions that will continue throughout the week,” Rod Sides, global leader of Deloitte Insights, said in a statement. “While Black Friday deals have traditionally been in-store, the event is becoming increasingly channel-agnostic, with retailers offering comparable deals both in-store and online. Retailers that can differentiate themselves through return policies, warranties and other perks can entice consumers and lead to a successful holiday season.”

An An Adobe report published last month shoppers are forecast to spend $11.2 billion on Cyber ​​Monday, up 5.1% from 2021. But according to that report, online sales on Black Friday will grow a more modest 1% year-over-year.

How many consumers will shop on Cyber ​​Monday and Black Friday remains to be seen. October survey from JLL found that more than half (54.2%) of the respondents planning to shop on Black Friday, and 54.3% shop on Cyber ​​Monday. however, a PwC survey earlier this month found that only 20% of shoppers plan to shop on Black Friday and only 17% of respondents wait until the weekend after Thanksgiving to shop for the holidays.

The PwC survey pointed to younger consumers using BNPL services this holiday season to stretch your budget. While 13% of survey respondents overall said they plan to use installment plans to pay for their gifts, 20% of millennial respondents said they would use these services.