Black Friday, Cyber Monday spending projected to hit new high

Consumers plan to spend an average of $567 during Black Friday and Cyber Monday shopping events, up 13% from last year, as they seek out the best deals while facing economic pressures such as higher prices and soaring interest rates.

The result is a new record for Deloitte’s annual Black Friday-Cyber Monday survey. About 84% of shoppers feel confident enough to stick with the budgets they set in September. In order to stay within their spending limits, many consumers plan to do much of their shopping during Black Friday and Cyber Monday. Four in 10 expect to finish their shopping during the period.

Consumers enjoy the holidays and “manage their budgets to make room for seasonal moments,” said Stephen Rogers, managing director of Deloitte’s Consumer Industry Center.

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Many early birds have already gotten discounts, with about 41% of respondents saying they shopped for holiday gifts during October promotional events. Those who shopped in October are likely to spend 25% less than others during Black Friday and Cyber Monday.

Deloitte polled 1 200 consumers between October 19 and October 25.

Deal seekers might pose a challenge to retailers. Target Corp reported a third-quarter decline in comparable sales driven by lower spending on discretionary categories. And same-store sales at Macy’s Inc. also fell in the most recent period as some consumers shift their spending toward experiences and away from goods.

An estimated 182 million people are planning to shop from Thanksgiving Day through Cyber Monday, the most since 2017, according to the National Retail Federation, an industry group. Still, the NRF expects slowing US holiday sales growth amid economic headwinds.

© 2023 Bloomberg

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