Retail Dive: Shoppers Will Spend $500 on Average This Black Friday Week, Says Deloitte
A Deloitte poll of 1,200 adults found that, despite worries about inflation in general, shoppers plan to spend an average of $500 on Black Friday and Cyber Monday this year. It appears that holiday shoppers of all income brackets are not only increasing their expenses but also their reliance on credit. According to Deloitte, Black Friday and Cyber Monday sales are expected to bring in $320 for shoppers with annual incomes of less than $50k, up 19% from the same period in 2016.
Moreover, customers with annual incomes over $100,000 plan to spend $650 during the same period, up 4% from the year before. The report also found that card use has increased among consumers overall. Up from 27% the previous year, 50% of low-income families intend to use credit cards to pay for their holiday purchases. From 38% in 2021 to 45% this year, the proportion of middle-income families planning to use credit cards for holiday purchases has increased. High-income earners are more likely to use credit cards this year (49%) compared to 2021 (45%).
As much as 50% of holiday spending is predicted to occur during the Thanksgiving weekend alone, which is a crucial time for merchants. "Consumers of all income levels are trying to make the most of their holiday budgets, and they see value in the promotions that will run all week long," said Rod Sides, global leader of Deloitte Insights.
While Black Friday sales have historically been limited to stores, many online and brick-and-mortar establishments are now offering competitive prices on the same products. Success during the holiday season is possible for retailers who offer unique return policies, warranties, and other perks to their customers.
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