Consumer Spending To Increase By 13% On Black Friday Holiday Shopping Despite Economic Headwinds: Deloitte Survey

Despite economic pressures, record-breaking spending is anticipated for this year’s Black Friday and Cyber Monday, with an expected average consumer spending of $567, a 13% increase from the previous year.

What Happened: According to a report by Bloomberg, shoppers are undeterred by challenges such as rising prices and increasing interest rates and are ready to scour for the best deals this shopping season. This comes as per Deloitte's annual Black Friday Cyber Monday survey.

Surprisingly, about 84% of shoppers are confident in sticking to their budgets set in September, with many intending to complete a significant portion of their shopping during Black Friday and Cyber Monday. In fact, four out of ten shoppers expect to wrap up their holiday shopping during this 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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Interestingly, about 41% of respondents had already cashed in on October promotional events. These early birds are expected to spend 25% less during the Black Friday and Cyber Monday sales.

However, this surge in deal seekers could pose a challenge for retailers. For example, Target Corp. (NYSE:TGT) reported a decline in third-quarter comparable sales due to lower spending on discretionary categories. Similarly, Macy's Inc. (NYSE:M) saw a dip in same-store sales recently as some consumers shifted their spending preferences.

Nevertheless, an estimated 182 million people are projected to shop from Thanksgiving Day through Cyber Monday, the highest number since 2017, according to the National Retail Federation.

Why It Matters: This anticipated surge in spending despite economic constraints underlines the resilience of the retail sector and consumer behavior. While some retailers may face challenges, the overall optimistic outlook could signal a robust holiday shopping season ahead, potentially boosting the economy and benefiting businesses.

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