Dec 11, 2024 | 3 min read
Top Line Summary
Holiday spending increases: Retail spending up 2%, with holiday-specific purchases jumping 5.3% compared to 2023.
Online shopping dominates: Online spending rose 7.9%, while brick-and-mortar retail dipped slightly by 0.3%.
Shoppers act early: 47% completed most holiday shopping by Cyber Monday, with 72% participating in Black Friday/Cyber Monday deals.
Black Friday 2024: A Look at Spending Trends
During the week ending November 30, household spending on retail (excluding autos), based on Bank of America credit and debit cards transactions data, was up 2.0% compared to the same time last year, following Black Friday 2023 (November 25). Even better, spending on holiday-related items jumped by an impressive 5.3%.
Online shopping took center stage this year. Online retail spending (aka card-not-present transactions) was up 7.9% compared to the same week in 2023. Electronics were a big hit online too, with a 7.6% increase, suggesting that some Cyber Monday deals might’ve been snagged early. On the other hand, brick-and-mortar retail slipped by 0.3%, even though most spending categories at physical stores still saw growth.
One thing to keep in mind: Thanksgiving landed five days later this year compared to 2023, which means the holiday shopping season is shorter. That likely gave retail and holiday spending a bit of a boost as people rushed to get their shopping done in less time.
Higher-income households stepped up their holiday spending much more than lower-income households in the week ending the day after Black Friday, especially when compared to late summer. The holiday shopping season is just kicking off, but so far, it’s looking pretty good.
Source: Bank of America; Dec 2024
Supporting these trends, a recent Morgan Stanley survey highlights that American consumers are planning to spend more this holiday season. While 35% are sticking to last year’s budgets, 32% plan to spend more, and 24% plan to spend less, resulting in a +9% net increase (up from +5% last year). Upper-income households are leading the charge, but deal-hunting remains a top priority. Even in challenging economic years, like 2022, holiday spending tends to rise, showing its resilience.
These spending intentions were reflected in Black Friday and Cyber Monday activity. This year, 72% of shoppers took advantage of the deals, compared to 58% in 2023. Popular categories included apparel, toys (30%, up from 21%), and gift cards (27%, up from 19%). Nearly half of consumers (47%) reported finishing most of their holiday shopping by Cyber Monday, compared to 37% last year. The balance between in-store and online shopping remained even, although higher-income shoppers leaned more toward online platforms.
Source: Morgan Stanley; Dec 2024
Source: Morgan Stanley; Dec 2024
The Bottom Line
Holiday spending in 2024 shows resilience, with consumers prioritizing deals and efficiency in a shorter shopping season. Higher-income households are driving much of the growth, especially online, while bargain-hunting remains strong across all income levels. Retailers catering to both convenience and value are poised to win this holiday season.
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