Holiday season spending in New York is projected to increase this year compared to last year, although middle-income shoppers are expected to see a smaller increase due to student loans and lower wage growth. According to a survey conducted by Deloitte, the average spending per shopper is predicted to be $1,652, a 14% increase from last year. Shoppers with yearly household incomes between $50,000 and $99,999 are expected to spend 26% more this year, approximately $1,534. Those earning $200,000 or more anticipate a 22% increase in holiday spending, reaching $3,922.
However, Americans with yearly household incomes between $100,000 and $199,999 plan to spend only 2% more this year, equivalent to $2,167. This demographic is less optimistic about holiday spending due to their college debt loads and lack of real wage growth. Brian McCarthy, a principal at Deloitte and the author of the report, explains that this group is likely to feel the impact of student debt more than others, making them the most burdened currently, especially considering the stagnant housing market.
The study also revealed that almost half of those with student loans across all income groups plan to limit their holiday expenses. On the other hand, a larger percentage of shoppers are focused on finding good deals. Two-thirds of respondents stated that they will be shopping during Thanksgiving week, which includes popular shopping days like Black Friday and Cyber Monday. This marks an increase from 49% in 2022.
With these insights into holiday spending patterns, both retailers and consumers can adjust their strategies accordingly.
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