PwC: Holiday shoppers on the hunt for deals

A new forecast casts an optimistic if deal-minded light on the upcoming holiday season. 

Consumers will increase spending by 7% this year, allocating an average of $1,530 for gifts, travel and entertainment, according to PwC’s “Holiday Outlook 2023.” Almost 40% of consumers will spend more overall than they did last year. Those with household incomes of $120,000 or more will exceed an average of $3,000.  

Female shoppers will spend 11% more this year than they did in 2022, continuing the trend of boosting the economy that they started during the summer with record-breaking attendance at movies and concerts.

But while consumers are willing to spend, they will also be looking to save money, the study found . More than 75% are on the hunt for deals this holiday season.

Eighty-six percent also said they plan to cut back on discretionary spending in at least one area including eating out, shopping for clothes and going out to movies or concerts. Some consumers said they would switch to non-branded products.

Aware that a pre-season of holiday deals is increasingly becoming the norm, consumers are biding their time while waiting for the best deals, according to PwC. Most will do the bulk of their shopping in early November while some will hold out for Black Friday sales. Those who plan ahead have already stocked up on gifts during ongoing mid-year sales because they found what they wanted at the right price.

Other findings from the PwC forecast are below.

•Price (65%), free returns (52%), convenience (51%)  and speed (47%) matter most to female holiday shoppers.

•Gen Z will increase their holiday spending by 15% this year, followed by “mature” millennials (14%) and Gen X (12%).

•Seventy-two percent of consumers expect to see deals before Black Friday. 

•Shoppers want the certainty of knowing their orders will arrive as promised. Proof-of-delivery (83%), easy-to-use tracking (80%) and flexible delivery times (68%) are priorities. For pickup, stores close to home and convenient curbside options matter.

•Forty-percent of consumers are likely to switch brands if an item arrives late.

•The summer travel boom  will continue into winter, with travel-related spending increasing a robust 12% over the 2022 holiday season.