Dive Brief:
- Consumers say they plan to spend about $5 billion less than they did in 2023 during the five-day Thanksgiving weekend period, according to a recent survey from ICSC.
- The survey of 1,013 respondents taken between Nov. 8 and Nov. 10 found that consumers planned to spend about $125 billion during the period compared to projections in 2023 of $129.5 billion. Millennials and Gen X shoppers are expected to lead spending, with average spend amounting to $628 and $629, respectively. Baby boomers are expected to spend an average of $444, per ICSC.
- Fifty-seven percent of those surveyed said their primary reason for shopping during the period is to find deals and discounts. And a majority (88%) said they would visit stores over those five days.
Dive Insight:
Consumers are looking to check items off their holiday lists at a time when concerns over inflation and other economic uncertainty remain present.
A significant portion of those surveyed — 66% — said they will use deals and discounts to stock up on necessary items unrelated to holiday shopping. Still, 84% do plan to spend on holiday gifts for others. That was followed by spending on dining (76%), other holiday-related items (73%), entertainment and activities (56%), and personal services (56%).
Black Friday shopping has already started, with major retailers like Amazon, Walmart, Target and Best Buy launching sales events earlier this fall. The upcoming shopping period remains important, though, according to ICSC.
“While the holiday shopping season and holiday promotions continue to start earlier each year, traditional milestones like Thanksgiving weekend remain solid shopping periods for retailers, and we expect this year to be no different,” Tom McGee, president and CEO of ICSC, said in a statement. “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, highlighting the opportunity for brands to create memorable holiday moments.”
An October report by the same company indicated that 63% of respondents planned to shop at discount stores over the course of the holiday season, while only one-third said they would look for products and gifts at traditional department stores.
Despite the ICSC’s projection of lower total spending for the period, an earlier survey focused on Black Friday to Cyber Monday by Bain projects a 5% increase in retail sales to a record $75 billion.
And the National Retail Federation is projecting that holiday sales for the entire season may rise as much as 3.5%. Despite continuing concern over inflation, the NRF in October cited job stability and wage growth as positive factors, and noted that retail sales had posted consecutive gains for 52 months.
