Saturday , June 3, 2023

Cyber Monday Could See a Big Spending Boost

With just days until the 2022 holiday shopping season begins in earnest, retailers may have a glimmer of hope for more sales if a new survey from Deloitte bears out. In its 2022 Black Friday-Cyber Monday Survey, consulting firm Deloitte predicts that consumers will spend on average $205 on Black Friday, the day following Thanksgiving, and $218 on Cyber Monday, the following Monday. These are 8% and 25% increases, respectively, over 2021.

Retailers also may benefit given that 80% of consumers plan to shop during the Black Friday-Cyber Monday period. That’s up from 71% in 2021, Deloitte says.

Though inflation and other economic concerns may weigh on consumers, their holiday shopping, at least for the upcoming weekend, looks hearty. Overall, for the Black Friday through Cyber Monday period, consumers will spend an average of $500 each, up 12% from 2021. Deloitte surveyed 1,200 adults in October. Others provided similar forecasts. ACI Worldwide Inc. predicts a 15% increase in e-commerce transactions for the October through December period, though Adobe Inc. forecasted a modest 2.5% increase for the Nov. 1 through Dec. 31 period, down from the 8.6% increase in 2021 over 2020.

Current economic conditions will affect some holiday shoppers this season. Overall, 48% said they will use credit cards to stretch their holiday-spending budgets, and 37% anticipate using a buy now, pay later service to help out. That’s higher than a recent survey from The Strawhecker Group and the Electronic Transactions Association that foresees 20% of consumers using a BNPL service this holiday season.

“Participation in the holiday weekend promotions and spending are expected to increase this year, as consumers are willing to do whatever it takes to celebrate the season, including leveraging payment options to purchase gifts. Retailers who work to build consumer loyalty during this challenging time can be well-positioned into the new year,” Nick Handrinos, vice chair of Deloitte Consulting LLP and U.S. retail, wholesale, and distribution, and consumer products leader, said in a statement.

Retailers, too, are reacting to the economy. Fifty-seven percent of them will discount the same or more compared to 2021. That may bode well, especially as consumers continue their return to in-person shopping.

Deloitte says the preference for online retailers is flat at 54%, with 63% of consumers planning to shop at a mass merchant. That’s up from 57% in 2021. Thirty-five percent will make a department store visit this year, up from 29% last year. Deloitte suggests these latter two channels will regain lost share as consumers seek out traditional Black Friday-Cyber Monday promotions.

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