Shoppers plan to increase holiday spending in 2024

Despite the optimism, many consumers remain focused on finding the best deals.

As the holiday season approaches, shoppers expressed optimism and are planning to increase their spending by eight percent compared to last year, according to Deloitte.

In its 2024 holiday retail survey, Deloitte projects the average holiday spending this year to reach $1,778 from $1,652 last year. This includes expenses on gifts, non-gift purchases, home furnishings, and experiences amongst others.

This expected increase was attributed to improved economic outlook, perceived higher prices, and an increase in spending by the $100K to $199K income group.

The survey also found that all income levels are still prioritising value and seeking deals, even as they are willing to increase their spending compared to last year.

“To keep the holidays festive, they’re making tradeoffs and seeking out deals with 75% planning to participate in October and November promotional events (versus 61% in 2023),” Deloitte said.

Retail executives share consumer optimism, with 80% predicting increased sales during the holiday season driven by higher in-store and online traffic. 

However, 78% believe that early promotions are leading to pre-season sales, highlighting the importance of having the right products and pricing strategies in place from the beginning of the holiday season, Deloitte said.