Digital Transactions Mentions First Insight | Holiday Shoppers Are Expected to Spend More This Year as the Season Gets Set to Kick Off
Consumers will spend a record $650 per person during Black Friday-Cyber Monday shopping events, a 15% increase from last year, according to a study from Deloitte.
During the Black Friday-Cyber Monday period, 56% of consumers say they plan to spend more than half their holiday shopping budgets, compared to 47% a year earlier.
While all income groups expect to increase their spending, consumers earning $50,000 or less annually, as well as those making more than $200,000, are expected to account for the highest spending increases during the period. Those two income groups are expected to spend 22% and 20% more, respectively, between Black Friday and Cyber Monday than they did a year ago.
Deloitte surveyed 1,200 consumers in October for the annual study.
During the Black Friday-Cyber Monday period, 53% of consumers say they plan to use a credit card to stretch their budget, while 29% say they plan to use buy now, pay later. Millennials are the demographic that is expected to make the most use of credit cards and BNPL financing, with 72% saying they plan to use those financing options.
E-commerce merchants are expected to see a lot of activity during the season’s opening weekend, with 69% saying they plan shop at online-only retailers, compared to 65% that plan to shop at mass merchants. It is the first time e-commerce merchants are expected to get the bulk of the traffic during this period, Deloitte says.
On Black Friday itself, online shoppers plan to spend $195, on average, compared to $150 for in-store shoppers. Online shopping on Black Friday grew 10% annually between 2019 and 2023, compared to 3% for in-store shopping.
Another notable trend is that just 25% of in-store shoppers plan to take advantage of door-buster deals, the study says. Meanwhile, online shoppers are starting early, with 58% looking for bargains during the Black Friday/Cyber Monday period.
Shipping costs appear to be a lesser deterrent during the 2024 holiday shopping season, as 36% more consumers say they are willing to spend more than $20 on delivery, according to research from First Insight Inc., a provider of software for retailers. Gen Zers (25%) and males (23%) are the demographics least likely to be deterred by shipping costs exceeding $20.
First Insight Interviewed 1,560 consumers in early November.
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