Consumer Spending Expected to Reach $125B on Thanksgiving Weekend 2022 Despite Inflation and Higher Interest Rates
Consumers are approaching the upcoming holiday shopping weekend with optimism, as the new ICSC Thanksgiving Weekend Intentions survey found that consumers plan to spend a total of $125B – a 10 percent increase over 2021, even with the holiday shopping season starting earlier this year than in previous years. On average, 89 percent of consumers expect to shop in the period beginning Thanksgiving Day and ending on Cyber Monday, despite concern around inflation and rising interest rates.
“While high inflation and rising rates may impact how consumers spend this holiday weekend, it’s clear that they do intend to spend on Black Friday and beyond,” said Tom McGee, President and CEO of ICSC. “The earlier start to the holiday season this year hasn’t dampened enthusiasm for traditional milestones like Black Friday and Cyber Monday, and we anticipate consumers will increase spending compared to last year across the holiday weekend.”
Consumers remain cognizant of economic factors and the ways in which inflation and interest rates are affecting their wallets this holiday season. Eighty-one percent say that rising interest rates are likely to impact their shopping behaviors or payment methods during Thanksgiving Weekend, saying they’ll cutback on overall spending (37 percent), defer to using a debit card (37 percent), use cash more than usual (31 percent) or take advantage of “buy now, pay later” options (23 percent).
When it comes to inflation, 61 percent agree that higher prices make Thanksgiving Weekend’s deals and discounts all the more influential on their purchasing decisions; taking advantage of deals and discounts was the top-cited reason (58 percent) for shopping during the weekend.
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“We’re continuing to see an evolution and more regular cadence of sales and promotional events throughout the holiday season – and increasingly earlier in the year,” added McGee. “Consumers are taking notice; two-thirds are placing less emphasis on specific deal events like Black Friday, and 38 percent cited an earlier start to shopping as a reason for that shift. Nonetheless, shoppers are still prioritizing deals in the current economic environment, and that includes Thanksgiving Weekend.”
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When deciding where to shop, nearly two-thirds (63 percent) of consumers cited price and value – the most influential factor by a wide margin. And, as fewer retailers open their doors on Thanksgiving Day, only about half (54 percent) of respondents say they’ll shop on the holiday. Nearly 8-in-10 consumers will shop on Black Friday and Cyber Monday; of those planning to shop on Black Friday, 64 percent say they’ll visit a physical store.
More than three-quarters say they’ll visit a retail marketplace throughout the five-day period; in that group, shopping (59 percent) and dining (48 percent) were the top activities, while other reasons for visiting include to see a movie (29 percent), attend holiday-themed events (21 percent) or take a child to visit Santa (15 percent).
