Shoppers to cut back shopping spend on Black Friday

US consumers plan to spend 4% less this Black Friday and Cyber Monday than last year, according to a Deloitte survey of 1,200 people in October.

After four years of growth in the post-pandemic era, spending will drop to an average of $622 during the promotional holiday season shopping events. Of those planning to cut spending, 69% cited the higher cost of living and 43% cited financial constraints.

Planned participation in Black Friday and Cyber Monday is slightly higher this year at 82% of consumers, compared to 79% in 2024.

Gen Z and millennials expect to keep spending flat, while Gen X and boomers plan to cut spending by 9% and 12% respectively.

Lower-income households (less than $50K) expect to spend 12% less, while households of $100K-$199K plan to spend 5% more. Households with income above $200K plan to spend 18% less.

Nearly half of respondents say they have experienced higher prices for products this season, while 34% say that retailers are discounting less.

To stretch their Black Friday and Cyber Monday budgets, 64% of shoppers plan to use credit cards or buy-now-pay-later services.

“While we expect shoppers to plan to pull back on spending, we also anticipate strong participation throughout the holiday week, with many planning to blend the convenience of online shopping with the energy of the in-store experience. This highlights the importance for retailers to deliver a smooth, connected experience no matter where people choose to spend their holiday dollars,” said Natalie Martini, vice chair and US retail and consumer products sector leader at Deloitte.

Black Friday and Cyber Monday is now a hybrid event, with 60% planning to shop online and 40% in-store during the five-day period.

Running counter to the digital-centric stereotypes of younger generations, 72% of Gen Z consumers plan to shop in-store on Black Friday compared to 49% of all shoppers.

“While most shoppers are showing restraint this season, the spending power of Gen Z is growing – they are responsible for about $20 of every $100 holiday dollar spent, compared to just $4 five years ago. And we expect they are headed back to the stores on Black Friday to take part in the excitement of the day,” said Brian McCarthy, principal and retail strategy leader at Deloitte Consulting.