Spending Slumps Ahead of Black Friday

Americans Plan to Spend Less This Black Friday

As Black Friday kicks off the holiday shopping rush, a new Deloitte survey shows that Americans across income levels are tightening their wallets. While millions will still hit stores and shop online this weekend, the amount they plan to spend is dropping — a sharp reversal from previous years.

Spending Down Across All Income Levels

Shoppers say they expect to spend 4% less than last year between Black Friday and Cyber Monday. The pullback spans the economic spectrum: households earning under $50,000 plan to trim spending by 12%, while even high-income households making over $200,000 anticipate an 18% drop. Deloitte’s research, based on a survey of 1,200 consumers, highlights an anxious financial environment heading into the holidays.

Economic Fears Shape Holiday Choices

Americans’ concerns go well beyond this shopping weekend. Consumer confidence in November fell to one of its lowest points on record, according to the University of Michigan’s widely watched sentiment index. Nearly 70% of respondents expect unemployment to rise in the coming year — double the percentage from last year.

Inflation remains a top worry. After easing earlier this year, it has slowly crept back up, hitting a 3% annual rate in September. Many voters cited affordability as a major issue in November’s elections, and younger shoppers in particular are relying on “buy now, pay later” apps to stretch their budgets.

Discount Retailers Gain Ground

Retail earnings reflect that strain. Walmart and discount fashion chains like Gap and TJX are seeing strong sales from families trading down to save money. Meanwhile, retailers associated with splurging — including Target and Bath & Body Works — reported weaker results.

Even with tighter budgets, Deloitte still expects strong participation this holiday week. Shoppers may be browsing — but they’re doing it more cautiously than ever.