Consumers are getting excited about Black Friday and plan to spend an average of $448 during the Thanksgiving period from Thursday, November 25 to Monday, November 29, up 12% from the 2020 period, according to Deloitte.
Deloitte research suggests that Black Friday shoppers will increase their spend to $135 on average in-store up from $124 in 2020.
From Thanksgiving to Cyber Monday, consumers plan to spend 60% of their budgets online and 40% in-store. Still, 56% of Black Friday shoppers plan to head out to stores versus 41% last year as COVID-19 pandemic-related safety concerns wane. In the end, consumers will spend 18% of the total Thanksgiving budget in-store, up from 13% last year, according to Deloitte.
In its research, Deloitte determined that 35% of shoppers will spend more over the holidays than they originally planned. Middle-income shoppers are driving the gain, with plans to spend an average of $504, up 18% from last year.
Supply chain challenges and inflation are affecting consumers, however, with 63% of holiday shoppers having already experienced stockouts, 54% saying they’ve encountered higher prices and 37% saying they have found fewer discounts versus last year’s festive season.
Yet, traditional Black Friday is regaining lost ground as 56% of consumers plan to shop in-store, up from 41% in 2020. The share of online purchasing planned for the day is holding steady at 18%, Deloitte indicated.
Compared to two months ago, 35% of holiday shoppers plan to increase their holiday spending, Deloitte determined. But they aren’t necessarily chasing additional goods, as 41% of those planning to spend more will do so as a result of higher prices they anticipate this year.
Even though holiday shopper participation during the Thanksgiving weekend period is on the decline, most, at 71%, still plan to shop in the timeframe this year, versus 74% in 2020 and 79% in 2019, Deloitte stated.
Consumers recognize they may have to reconsider their purchasing intentions during the holiday period. Interest in gift items such as clothing, at 66%, toys at 56%, and electronics, at 53%, remains steady, but they are the categories where shoppers have experienced the most stockouts. In an interesting twist, the proportion of shoppers buying food and beverage for the holidays is up by 8 percentage points year-over-year to 52%, Deloitte noted, adding that 55% of holiday shoppers who plan to increase their holiday outlays now say they will spend more on experiences and entertainment, up from 49% last year.
