Shoppers are expected to spend less this Black Friday weekend for the first time in four years, reflecting increasing concerns about affordability in the U.S.
A recent survey indicates that people planning to shop during the Black Friday and Cyber Monday events anticipate spending an average of $622—about 4% less than last year, according to a Deloitte study of 1,200 consumers.
This decline appears to affect consumers across various income levels.
The survey revealed that those earning under $50,000 a year might spend 12% less, while higher earners—those making $200,000 or more—expect an 18% decrease in spending.
Conducted between October 15 and October 23, the survey showed that 69% of those intending to cut back attributed their reasons to rising living costs, while 43% cited financial constraints.
Interestingly, this marks a shift in consumer behavior; for the past four years, shoppers indicated they would likely spend more than the previous year, as per the survey’s findings.
Moreover, a growing number of consumers are keen to find discounts and deals during the busy shopping period from November 27 to December 1 this year.
Around 82% of respondents said they plan to shop over the weekend, an increase from 79% in 2024, according to Deloitte.
With fewer discounts available and the prices of holiday items causing sticker shock, almost two-thirds of shoppers intend to use financing options, such as credit cards and buy-now-pay-later (BNPL) services, to manage their budgets.
Apps like Klarna, Afterpay, and Affirm let consumers purchase items and pay in installments, often without interest.
Young shoppers are particularly interested in these financing solutions, with 39% of Gen Z and Millennials planning to utilize BNPL for their Black Friday purchases.
But experts caution that relying on these popular payment methods could lead to overspending and debt.
Many Americans aren’t optimistic about the near future, anticipating inflation to rise to 4.5% by next year, according to a University of Michigan consumer sentiment survey.
“This season, consumers are trying to find the best deals to finish their holiday shopping. They’re making gift lists and exploring promotions from Black Friday through Cyber Monday to make their budgets stretch,” Natalie Martini from Deloitte stated.
“While we foresee shoppers planning to spend less, we also expect a high level of engagement throughout the holiday week, with many looking to blend the convenience of online shopping with the excitement of in-store experiences.”
The monthly consumer sentiment measure dropped to 50.3 earlier this month, the lowest it’s been in over three years and nearing record lows, according to recent survey data.
Worries about affordability and high costs have influenced political outcomes, aiding Democrats, such as incoming New York Mayor Zoran Mamdani, in their recent victories.
This climate has prompted President Trump to increase focus on affordability policies, pledging $2,000 checks for most Americans and proposing to lower tariffs on essential goods like bananas and coffee by the midterm elections in 2026.
Meanwhile, inflation reached 3% in September, marking the quickest rise since January, according to the most recent consumer price index.
Despite some job growth—U.S. employers added 119,000 jobs in September, surpassing expectations—the unemployment rate climbed to 4.4%, the highest since October 2021, according to the U.S. Bureau of Labor Statistics.
