This Black Friday might be a boon for retailers, as U.S. consumers plan to spend big but continue to seek deals after years of struggling to deal with inflation, according to a new survey from Deloitte.
This survey of 4,114 U.S. consumers and 45 retail industry executives found that 80% of consumers plan to shop during Black Friday-Cyber Monday. Spending is expected to reach a new high of $650, up 15% compared to last year.
“Black Friday” typically refers to deals offered on the day after Thanksgiving, the official start to the holiday shopping season. However, deals can pop up sooner and last later. For example, Walmart announced last month that its deals would kick off Nov. 11.
According to the 2024 Deloitte holiday retail survey, consumers were seeking out deals this year and 75% planned to participate in promotional events during both October and November, compared to 61% last year.
“With five fewer shopping days this year, these promotional events may be crucial to tempt consumers to purchase early,” said Deloitte.
Overall, its survey found that shoppers are planning to up their purchases this holiday season. They expect to spend $1,778 up 8% compared to last year. Deloitte said this is in part due to a rosier economic outlook, perceived higher prices. A significant majority of survey respondents (70%) expected higher prices and all income groups were “showing signs of frugality.” Those signs included a decrease in expected “self-gifting.”
As for retailers, 78% felt that earlier promotions were helping sales and that this emphasized “the need for retailers to have the right products and prices early in the season.”
“Of the retail executives surveyed, 76% believe most consumers will value lower prices over brand loyalty,” said Deloitte. “To stand out in a value-focused environment, retailers could consider shoring up loyalty programs and investing in omnichannel experiences to provide the value and convenience that price-wary consumers will likely be looking for.”
Some retailers offer exclusive items on Black Friday as well as deals. For example, Target announced an exclusive partnership with pop star Taylor Swift to debut merchandise such as books, vinyl albums and CDs this year.
In addition to hitting Black Friday sales, consumers are also planning to spend on experiences rather than goods during the 2024 holiday season, Deloitte found. Spending on experiences is expected to increase 16% this year.