Key takeaways
-
Holiday shopping is back, with spending expected to surpass pre-pandemic levels for the first time. Consumers surveyed plan to spend an average of $1,652, representing a 14% year-over-year increase, though a modest four-year CAGR of 2.5% reflects a normalization of trends.
-
Nearly all consumers surveyed plan to participate in the holiday season (95%, up from 92% in 2022 and 88% in 2021), reflecting a return to pre-pandemic levels.
-
Nearly three-quarters (72%) of consumers surveyed expect higher prices and plan to navigate inflation by budgeting for fewer gifts (eight versus nine in 2022), spending more on gift cards ($300 versus $217 in 2022), and seeking out deals (66% plan to shop Black Friday — Cyber Monday (BFCM) versus 49% in 2022).
-
Nearly one-third of shoppers’ budget will be spent in the last two weeks of November, with 78% actively shopping during that period.
-
Student loan repayments are a lump of coal for some but will likely have a minimal impact overall on the holiday season.
Why this mattersÂ
Consumers intend to make this holiday season memorable. For 38 years, Deloitte has studied consumer behavior and sentiment ahead of the crucial holiday shopping season. This year’s “2023 Deloitte Holiday Retail Survey” examines what retailers can likely expect from consumers shopping for the holidays. Many shopping trends tracked during this survey represent a return to pre-pandemic norms, demonstrating the opportunity for a jolly season for consumers and retailers alike.
Holiday spending finds merry momentum
Even as the economy continues its uncertain trajectory, most consumers surveyed plan to spend this holiday season on gifts, but are also looking to decorate and participate in holiday experiences. For the first time post-pandemic, holiday shopping is predicted to surpass 2019 levels with an average expected spend of $1,652, up 14% from last year. All income groups plan to spend more this year, with the…
Read the full article here