Despite a drop in retail sales in October, the first in seven months, expectations are high for a surge in consumer spending over
the Thanksgiving weekend. This period marks the start of the holiday shopping season. According to the International Council of Shopping Centers (ICSC) most recent survey on Thanksgiving Weekend Intentions, anticipated spending is projected to reach $130 billion from Thanksgiving Day to Cyber Monday. This figure represents a 4% increase compared to last year’s spending plans.
ICSC President and CEO Tom McGee commented on the positive outlook of shoppers, “Despite ongoing concerns about inflation, consumers appear eager and optimistic about the holiday shopping season. Their focus is on leveraging deals and promotions to maximize their holiday budgets.”
Significant stock movements have been noted in major retail companies in anticipation of this spending boost. Walmart Inc. (WMT) saw a 1.29% increase, while Target Corp. (TGT) experienced a notable 17.98% rise. On the other hand, Amazon.com Inc. (AMZN) dropped by 1.78%, and Best Buy Co. Inc. (BBY) increased by 3.62%.
The survey reveals that a vast majority of consumers, about 90%, plan to engage in shopping activities during the Black Friday weekend, with two out of five intending to spend more than in 2022. Approximately 70% of respondents plan to use promotions to purchase everyday essentials, and 71% intend to research prices in advance to secure the best deals.
In-store shopping remains popular, with 90% of those planning to shop during Thanksgiving weekend intending to visit physical stores for purchases or to pick up online orders. Additionally, 84% are planning online purchases, with payment preferences leaning towards debit cards (65%), followed by credit cards (49%) and cash (45%). Notably, 13% of shoppers are considering buy-now, pay-later options.
Most shopping activity is expected to occur on Black Friday, with 80% of consumers planning purchases, and on Cyber Monday, with 81% indicating their intent to shop.
In a related finding from Deloitte’s 2023 holiday survey, consumer spending for the entire holiday season is set to surpass pre-pandemic levels for the first time, with an average expenditure of $1,652. This spending is anticipated to be completed over a span of 5.8 weeks, shorter than the pre-COVID duration of 7.4 weeks.
The Importance of Efficient Debt Management 
As we observe these significant spending trends, it’s also important to note the financial responsibilities that come with the festive season. While businesses anticipate a boost in revenue, they also face the challenge of managing their finances effectively, especially when it comes to outstanding debts and receivables.
The surge in consumer spending during the holiday season, while beneficial for business revenues, can also lead to an increase in outstanding debts and delayed payments. This is where the expertise of a debt collection attorney becomes invaluable. As businesses navigate through the busiest shopping period of the year, ensuring efficient management of their receivables is crucial.
A debt collection attorney can provide custom strategies to manage and recover outstanding debts. This helps ensure businesses keep a steady cash flow, making sure holiday season profits boost their overall financial well-being.
As businesses focus on capitalizing on the increased consumer spending, it’s equally important to pay attention to the financial management aspect. Partnering with a seasoned debt collection attorney can provide peace of mind and allow businesses to focus on what they do best – serving their customers.
Conclusion
As the holiday season brings a wave of consumer spending, it’s an opportunity for businesses to thrive. With the right strategies and professional support, like that from a qualified debt collection attorney, businesses can ensure that this season’s prosperity is fully realized.