Inflation fears aren’t as omnipresent as they were earlier in the year and shoppers are ready to spend as the holiday season gets underway, according to Deloitte.
A new report from the consultancy predicts Americans will spend record amounts on Black Friday and Cyber Monday (BFCM) this year. Deloitte says consumers will spend an average of $650 over the shopping event, a 15% increase over last year.
It’s all about getting the most bang for the buck, as nearly half of the consumers Deloitte spoke with said they have experienced higher prices for holiday items this year. Some 80% of the respondents said they plan to shop during BFCM—with an ever-increasing group focusing on online options.
“This year we have a shorter holiday shopping season with the late Thanksgiving. Combined with a deal-focused consumer, we can expect to see holiday shoppers spend big during Black Friday-Cyber Monday promotions as they seek to close out their holiday shopping lists in a shorter timeframe, said Brian McCarthy, principal at Deloitte, in a statement. “We continue to see the week evolve as a hybrid event, but online retailers are taking the top spot for the preferred format for the first time among those surveyed.”
Deloitte’s survey runs counter to predictions by the National Retail Federation, which said in October it was expecting a 2.5%–3.5% decrease in holiday sales.
BFCM spending will make up more than half of people’s holiday budgets, the study found. While some retailers, including Amazon, began offering deals in October, consumers weren’t swayed. Just 32% of the people Deloitte spoke with said they believed that time period offered the best deals.
So what are people buying more of? Basically…everything.
Every gift category is expected to see increases this year. Deloitte says 77% of consumers plan to purchase clothing and accessories, 57% will be eyeing electronics and accessories, and 54% are looking for something toy-/hobby-related. Health and wellness and pet products will also be hot items.
And while it’s the season of giving, about half of shoppers plan to give something to themselves as sales rage. People’s average spend on themselves this year comes in at $280.