Shoppers plan to spend 13% more this year during the Black Friday-Cyber Monday shopping events, a new report from Deloitte has revealed.
Deloitte's 2023 Black Friday-Cyber Monday Survey, interviewed 1,200 US-based consumers between 19 October and 25 October, to examine what retailers can expect from shoppers between Thanksgiving and Cyber Monday.
Eighty-four percent of respondents said they were confident in their original budgets from this September and plan to spend the same or more.
Shoppers plan to take advantage of promotional offers this season and a significant portion of the expenditure is likely to take place during the BFCM period.
Eighty percent of consumers plan to shop during the Thanksgiving week, with an expected spend of $567 (€520), data showed.
Among those expecting to spend more, 51% plan to buy more gifts, 44% plan to update non-gift clothing, and 40% foresee higher prices.
Four in 10 shoppers also plan to complete all their holiday shopping during the Black Friday-Cyber Monday timeframe.
Brian McCarthy, principal at Deloitte Consulting LLP said, "As consumers tackle their gift lists, we see Black Friday-Cyber Monday as an omnichannel opportunity this year — to attract both consumers who have come to embrace online shopping for its convenience, as well as those who are excited to head to stores to capture the best deals without potential delivery fees.
"Retailers who understand shifting consumer preferences could reshape the way shoppers make the most of holiday deals."
Millennials are expected to drive a significant share of spending during the BFCM period (43%) compared to Gen X (23%), Boomers (20%) and Gen Z (13%).
They also are more likely to embrace the Black Friday doorbuster traditions – 50% surveyed are likely to go to stores between midnight and 7 a.m. versus 31% of other shoppers, data showed.
They also intend to increase their average spending during the BFCM shopping events by 38% year-on-year and prioritise self-gifting, with 68% planning to buy gifts for themselves.
Stephen Rogers, managing director of Deloitte Insights Consumer Industry Centre, Deloitte Services LP, stated, "Millennials have taken over as the largest share of Black Friday-Cyber Monday spending. This year, retailers have an opportunity to better connect with millennials, who grew up heading to midnight doorbuster deal events.
"Millennials are also more likely to self-gift, so retailers have any opportunity to entice these shoppers to throw a couple of extra gifts in their baskets."
Elsewhere, according to EY's latest Future Consumer Index, 61% of respondents worldwide are intending to participate in sales events such as Black Friday, Singles' Day, or similar campaigns, as these festive season sales promotions are gaining increased appeal among consumers.
The report revealed that 71% plan to defer certain purchases until these designated periods, a notable increase from the 48% reported in November 2021.
UK & Ireland
In Ireland, Black Friday retail sales is projected to hit €40 million this year, exceeding 2021’s peak of €36 million, according to trade credit specialist, Atradius.
The sales event grew from €6.4 million in 2019 to €36 million in 2021, driven by low inflation, low interest rates, and a growth in e-commerce, and registered a decline of €10 million last year due to high interest and high inflation rates.
In the UK, beauty (+151%), toys (+116%) and consumer electronics (+158%) saw significant percentage growth last year during Black Friday, data from Kantar showed.
The top five retailers were Amazon, John Lewis, Argos, Boots, and Curry's.