As the holiday shopping season gains momentum, American consumers are opting for restraint in their spending this year. A recent survey conducted by Deloitte found that shoppers plan to spend 4% less on Black Friday and Cyber Monday than last year, driven primarily by concerns over rising costs of living and economic uncertainty.
The reversal is notable, as previous surveys have consistently shown shoppers planning to increase their spending during the post-Thanksgiving weekend. This year's pullback will affect both low-income and high-income households, with those making less than $50,000 expected to cut their spending by 12%, while those earning more than $200,000 plan to decrease their expenditures by 18%.
Experts point to a growing sense of economic unease among consumers, who are feeling increasingly fearful about the broader economy and their personal finances. This sentiment is reflected in the lowest level on record for consumer confidence, according to the University of Michigan's November survey.
Shoppers are bracing themselves for higher prices, with inflation expected to hit 4.5% by next year, according to respondents in the University of Michigan survey. In response, retailers are shifting their strategies, with discount stores like Walmart and TJX Cos. reporting strong sales figures as shoppers seek bargains on necessities.
Financing options are also becoming increasingly popular, with half of shoppers planning to use buy now, pay later services for holiday shopping. These services, which allow customers to make purchases and then pay them off in installments, have become particularly appealing among younger generations, such as Gen Zers and millennials.
While some experts warn that these financing options can entice consumers to overspend and fall into debt, retailers are eager to capitalize on this trend. As the holiday shopping season unfolds, it will be interesting to see how consumers balance their desire for savings with their concerns over economic uncertainty.
The reversal is notable, as previous surveys have consistently shown shoppers planning to increase their spending during the post-Thanksgiving weekend. This year's pullback will affect both low-income and high-income households, with those making less than $50,000 expected to cut their spending by 12%, while those earning more than $200,000 plan to decrease their expenditures by 18%.
Experts point to a growing sense of economic unease among consumers, who are feeling increasingly fearful about the broader economy and their personal finances. This sentiment is reflected in the lowest level on record for consumer confidence, according to the University of Michigan's November survey.
Shoppers are bracing themselves for higher prices, with inflation expected to hit 4.5% by next year, according to respondents in the University of Michigan survey. In response, retailers are shifting their strategies, with discount stores like Walmart and TJX Cos. reporting strong sales figures as shoppers seek bargains on necessities.
Financing options are also becoming increasingly popular, with half of shoppers planning to use buy now, pay later services for holiday shopping. These services, which allow customers to make purchases and then pay them off in installments, have become particularly appealing among younger generations, such as Gen Zers and millennials.
While some experts warn that these financing options can entice consumers to overspend and fall into debt, retailers are eager to capitalize on this trend. As the holiday shopping season unfolds, it will be interesting to see how consumers balance their desire for savings with their concerns over economic uncertainty.
... they have these amazing Korean tacos that are literally so good! I'm thinking of trying to make a similar recipe at home, but I keep messing up the seasoning 
. Anyone got any tips on making good kimchi?
. And yeah, buy now, pay later services are tempting, but I think they're actually kinda smart - it gives you time to think before you buy and can help with financial stress 
. What's your take on this? Are you stocking up on deals or being more chill about spending? 
I get it, inflation is outta control and prices are gonna keep goin up but 4% less on Black Friday? That's like, a whole lotta dough 
Walmart and TJX Cos are killin it with the discounts tho, maybe we can all just stick to necessities for once 
.
. And now with inflation on the rise, it's no wonder they're trying to pinch those pennies 
.
i feel like its finally sinking in that our economy is actually facing some real challenges 
people are getting wise and thinking twice about splurging on stuff they don't really need 
). It's good to see retailers adapting to the changing consumer mindset. Let's hope people stick to their plans and don't get swayed by all the temptation on Black Friday 
this year. People's spending habits are changing and I'm not surprised. We're living in uncertain times and folks want to save some cash 
. It's all about finding a balance between saving and splurging, right? I mean, who doesn't love a good deal on some new gadgets or electronics 
.
. Like, I get it, we're all in this together, but come on! Don't they think about their credit scores? 
Anyway, it'll be wild to see how consumers navigate the shopping season without breaking the bank 
.
Shopping? What shopping?! 
?
Gen Z and millennials: "Buy now, pay later"... more like "buy now, worry later" 
When will the economy stop being a hot mess?! 
.
. I'm low-key hoping retailers r gonna be smart about offerin discounts n promotions instead of just makin us pay more later on 
. I hope people are being careful with themselves about overspending...