Early holiday forecasts from Deloitte, among other consulting firms, predicted a slow build to the shopping season, with little growth likely between 2.3 and 3.3 percent across the season.
Reports indicate that the 2024 holiday shopping season has more than its fair share of deal-focused consumers putting value at the top of their shopping lists. And while deals starting as early as July have captured their attention for a lengthy spending season, this year’s Black Friday and Cyber Monday weekend promises to stand on its own.
According to Deloitte’s “2024 Black Friday–Cyber Monday Survey,” consumers will likely spend $650 during these shopping events — up 15 percent year-over-year and setting a new record. Year-over-year, Deloitte’s data finds that participation in Black Friday and Cyber Monday has remained steady with 80 percent of survey respondents reporting that they plan to shop during the week.
You May Also Like
Moreover, the authors of Deloitte’s holiday shopping report found that spending during the Thanksgiving weekend has accelerated since 2021 with consumers across all demographics and income levels planning to spend more, though especially Gen Z shoppers and those consumers with incomes less than $50,000 or over $200,000.
Brian McCarthy, principal at Deloitte Consulting LLP, pointed out that this year consumers have a shorter holiday shopping season due to Thanksgiving falling late in November and combined with a deal-focused consumer, Deloitte “expects 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.”
“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,” said McCarthy. “This reinforces the importance of offering a consistent omnichannel experience to draw in consumers whether they plan to shop in-store, online, or both.”
As Black Friday and Cyber Monday shoppers plan to spend more, 45 percent of consumers told Deloitte they “have already experienced higher prices for holiday items this season,” nearly a third of respondents also said that retailers are discounting less. With these sentiments in mind, shoppers plan to spend the majority of their holiday budgets during the promotional week.
Consumers told Deloitte that they plan to spend more than half of their holiday budgets during the Thanksgiving promotional period, up from 47 percent in 2023. Sixty-nine percent of survey respondents said they preferred to shop at online-only retailers, while 65 percent said they preferred to shop at mass merchants during this time — marking the first time that online-only retailers took top place in Deloitte’s annual survey.
To further their budgets, 53 percent of consumers also said they plan to use credit cards, an increase from 35 percent in 2023. Almost 30 percent also said that they will utilize buy now, pay later options. At 72 percent, Millennials were the largest generation to indicate financing and credit card usage this season.
Overall, Deloitte’s survey findings indicate that shoppers count on Black Friday deals. While early seasonal promotions have gained interest, only 32 percent of survey respondents who shopped during October deal events said it offered the best deals, compared to 49 percent in 2023. Forty-seven percent of consumers said the best deals of the season are on Black Friday. This finding, said the authors of the report, opens up an opportunity for retailers to attract these value-seeking shoppers during the Thanksgiving promotional weekend.
“Consumers are relying on this week to stretch their dollars,” said Stephen Rogers, managing director at Deloitte Insights Consumer Industry Center, Deloitte Services LP. “Black Friday- Cyber Monday is all about value. Holiday shoppers expect to spend more than half their holiday budget this week, and we expect to see an even greater share of spending among Gen Z and Millennials seeking deals on gifts for loved ones and for themselves.”
Deloitte’s survey indicates that all gift categories will see increased participation during the Black Friday-Cyber Monday weekend. Top categories include clothing and accessories (77 percent), followed by electronics and accessories (57 percent) and toys and hobbies (54 percent). Forty-eight percent of shoppers said they also plan to take advantage of discounts to buy a gift for themselves with $280 as the average spend on this purchase.
