Consumers say they’re planning to spend more money during the 2024 Black Friday shopping weekend than they did a year ago, but there’s more to the overall economic story than meets the eye.
A Deloitte survey finds that the shoppers plan to spend $650 each, a 15% increase vs. a year ago. The problem? The enhanced spending picture is driving more shoppers to take on debt. Sixty-two percent say they’ll have to reply on financing options like credit cards (53%, an increase of 18 percentage points vs. last year), with 29% saying they’ll utilize BNPL (“buy now, pay later”) options.
The expected spending increases are across the board, applying to shoppers in every demographic bracket. Members of Gen Z (born between 1997 and 2012) are most likely to expand their budgets. And everyone is looking for a deal, which Deloitte says is an ongoing trend that underscores the importance of the holiday shopping weekend.
“This year, we have a shorter holiday shopping season with the late Thanksgiving,” Brian McCarthy, principal of Deloitte Consulting, says in the report. “Combined with a deal-focused consumer, we can expect holiday shoppers to spend big during Black Friday-Cyber Monday promotions as they seek to close out their holiday shopping lists in a shorter timeframe. We continue to see the week evolve as a hybrid event, but online retailers are taking the top spot for the preferred format for the first time among those surveyed. This reinforces the importance of offering a consistent omnichannel experience to draw in consumers whether they plan to shop in-store, online, or both.”
The day after Thanksgiving — Friday, Nov. 29 — is expected to be the busiest day, with 47% saying that’s when they anticipate finding the best deals. Nearly two-thirds (66%) plan to shop that day.
Meanwhile, an ICSC survey expects spending of $125 billion during the five days that stretch from Thanksgiving to Cyber Monday — with an average spend of $529 per person. Nine in 10 survey respondents said they’ll shop within that window, with 88% saying they’ll do at least some shopping at physical retail.
“Two-thirds of consumers plan to do all or most of their holiday shopping during those five days, and four in five plan to shop on Black Friday and Cyber Monday,” Tom McGee, President and CEO of ICSC, said in a release.