US holiday shoppers to embrace a festive season of spending: Deloitte
Consumers are gearing up to embrace the spirit of spending once again this holiday season, according to Deloitte
Holiday spending is projected to exceed pre-pandemic levels for the first time. Consumers plan to spend an average of $1,652, marking a significant increase of 14% compared to 2022. Notably, nearly one-third of shoppers intend to allocate a significant portion of their budgets during the last two weeks of November, with 78% actively engaging in holiday shopping during this period.
This holiday season, 95% of consumers are planning to participate, a notable uptick from 92% in 2022 and 88% in 2021. Furthermore, all income groups are planning to spend more this year, with middle-income groups aiming to increase their holiday spending by 26% compared to the previous year.
Due to inflation and higher prices, consumers are budgeting for slightly fewer gifts (8, as opposed to 9 in 2022), placing more emphasis on gift cards (an average spend of $300 compared to $217 in 2022), and actively seeking out deals. A significant 66% of shoppers plan to partake in Black Friday and Cyber Monday sales, a substantial increase from 49% in 2022.
Beyond gifts, non-gift purchases are expected to rise by 25% this year, as consumers prioritize holiday decorations, furnishings, and other non-gift apparel items alongside traditional gifts.
“Although inflation shows signs of moderating, consumers have come to expect higher prices and are adjusting their holiday spending accordingly,” said Nick Handrinos, vice chairman, Deloitte LLP, and U.S. retail, wholesale and distribution and consumer products leader.
“We expect to see shoppers make their lists and check them twice for deals, but a return to pre-pandemic spending levels shows promise for the season overall. Retailers can expect continued store growth as shoppers aim to maximize their budgets with their favorite retailer, presenting new opportunities to build loyalty.”
