October 17, 2023
(press release)
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NEW YORK, Oct. 17, 2023 — Consumers intend to make this holiday season memorable. For 38 years, Deloitte has studied consumer behavior and sentiment ahead of the crucial holiday shopping season. This year’s “2023 Deloitte Holiday Retail Survey” examines what retailers can likely expect from consumers shopping for the holidays. Many shopping trends tracked during this survey represent a return to pre-pandemic norms, demonstrating the opportunity for a jolly season for consumers and retailers alike. Even as the economy continues its uncertain trajectory, most consumers surveyed plan to spend this holiday season on gifts, but are also looking to decorate and participate in holiday experiences. For the first time post-pandemic, holiday shopping is predicted to surpass 2019 levels with an average expected spend of $1,652, up 14% from last year. All income groups plan to spend more this year, with the middle-income group (those making $50,000 to$99,999) seeing the most significant gains and intending to spend 26% more year-over-year. Although inflation shows signs of moderating, consumers have come to expect higher prices and are adjusting their holiday spending accordingly. We expect to see shoppers make their lists and check them twice for deals, but a return to pre-pandemic spending levels shows promise for the season overall. Retailers can expect continued store growth as shoppers aim to maximize their budgets with their favorite retailer, presenting new opportunities to build loyalty. Consumers plan to shop in-store as they search for deals and avoid shipping costs this holiday season. Retailers can capitalize on customer loyalty by offering options regarding where and when shoppers check out. Inflation-wary customers hope to make the most of key promotional events and are holding on to traditional timing to stretch their budgets. The promotional timing will likely be crucial as consumers intend to wrap up their shopping quickly. After several years of uncertainty, shoppers return to the familiar to make their holiday celebrations shine. They plan to frequent their favorite retailers and focus their shopping during the traditional late fall period. With customers planning to shop fewer weeks, retailers have a shorter amount of time to gain consumers’ attention, highlighting the importance of the November promotional events this holiday season. Deloitte’s “2023 Holiday Retail Survey” is based on a survey of 4,330 consumers fielded between Aug. 30 and Sept. 8. Deloitte also surveyed 43 retail industry executives, of which 93% were from retailers with annual revenues of $1 billion or more, conducted June 23-30. Connect with us on Twitter at @DeloitteUS or on LinkedIn @NickHandrinos and @BrianCMcCarthy. About Deloitte Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world’s most admired brands, including nearly 90% of the Fortune 500® and more than 8,500 U.S.-based private companies. At Deloitte, we strive to live our purpose of making an impact that matters by creating trust and confidence in a more equitable society. We leverage our unique blend of business acumen, command of technology, and strategic technology alliances to advise our clients across industries as they build their future. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Bringing more than 175 years of service, our network of member firms spans more than 150 countries and territories. Learn how Deloitte’s approximately 457,000 people worldwide connect for impact at www.deloitte.com.Key takeaways
Why this matters
Holiday spending finds merry momentum
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Nick Handrinos, vice chairman, Deloitte LLP, and U.S. retail, wholesale and distribution and consumer products leader
Consumers seek out deals to stretch budgets and keep the season festive
Timing is everything
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Brian McCarthy, principal, Deloitte Consulting LLP
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