Consumers Eager for Holiday Savings Events, Survey Finds
With the year’s biggest savings events already underway or right around the corner, brands and retailers have already been hyping up Black Friday and Cyber Monday deals, even earlier than usual this year.
After slower than anticipated sales from this year’s second Amazon Prime Day in October, and the looming recession, a new report and survey from Deloitte found that consumer demand for deals and specials before the holidays is still strong.
Deloitte’s recently published report, titled "2022 Black Friday-Cyber Monday Survey," examines what retailers can expect from shoppers between Thanksgiving and Cyber Monday. Conducted online from Oct. 19-28, the report surveyed 1,200 adults (18+) who plan to shop for holiday gifts during the Black Friday and Cyber Monday (BFCM) shopping events (Nov. 24–28). Among its findings, key takeaways from the report include:
- Consumers will spend an average of $500 during the BFCM shopping events period this year, up 12% from last year.
- Shoppers plan to rely more on credit payment options, including credit cards (48%) and buy now, pay later (37%) to stretch their holiday budgets, during the holiday weekend.
- In search of deals and promotions, shoppers will spend half of their holiday budgets over the BFCM period, with all income groups expected to spend more year-over-year.
- Eight in 10 holiday shoppers plan to shop during BFCM events (versus 71% in 2021).
The slight rise in shoppers planning to partake in this year’s BFCM events are on par with pre-pandemic levels, according to the report. Younger generations are driving the charge, with 86% of Gen Zers and 89% of Millennials planning to spend during the timeframe. Other highlights from the report include:
- BFCM spending is set to increase across income groups, with lower-income earners (those making less $50,000 per year) planning to increase their spending the most over the five-day period (up 19% year-over-year to $320). In comparison, higher-income earners (those making more than $100,000 per year) plan to increase their spending by 4% to $650.
- Participation in Black Friday and Cyber Monday is on the rise, up to 64% and 56%, respectively. Black Friday shoppers are expected to spend $205 on average, up from $190 in 2021, while Cyber Monday shoppers are expected to spend $218 on average, up from $175 last year.
- Nearly half of BFCM shoppers (48%) plan to use credit this year, up from 35% in 2021.
- Buy now, pay later is also on the rise with 37% of BFCM shoppers planning to take advantage of this option.
- Among shoppers planning to spend during the holiday shopping weekend, 43% say they will delay large purchases.
Additionally, BFCM events are becoming more channel agnostic. While Cyber Monday continues to capture a significant share of the online shopping budget, 69% of consumers say retailers offer comparable deals online and in-store during the holiday weekend. For example, the share of online and in-store sales for Black Friday is nearly the same at 16% and 17%, as a result of greater price transparency, per the report.
While preference for online retailers remains flat at 54%, mass merchants (63%, up from 57% in 2021) and department stores (35%, up from 29% in 2021) regain lost share as consumers seek out traditional BFCM promotions.
"With half of holiday budgets expected to be spent over the Thanksgiving shopping weekend, it's a critical period for retailers,” said Rod Sides, global leader of Deloitte Insights and vice chair, U.S. retail, wholesale and distribution and consumer products, in a news release. “Consumers from every income level are looking to maximize their holiday budgets, therefore seeing value in the promotions set to last throughout the week. While Black Friday deals have traditionally been in-store, the event is becoming more channel-agnostic, with retailers offering comparable deals both in-store and online. Retailers who can differentiate themselves through return policies, warranties and other perks can entice consumers and result in a successful a holiday season."
