Cyber Monday has taken the crown for Thanksgiving weekend’s most popular shopping day, outpacing Black Friday and Small Business Saturday, according to a new Bankrate survey.
Fifty-nine percent of Americans in new Bankrate survey are likely to shopp on that day. As well, 53 percent of Americans are likely to on Black Friday, and 50 percent on Small Business Saturday.
Several factors, including a late Thanksgiving week, record credit card debt and inflation-weary shoppers, have had an impact on holiday shopping habits, presenting a challenge for small businesses looking to attract customers.
Thanksgiving being on November 28th this year leaves slightly over a month for shoppers looking to get gifts before New Year’s Eve.
“Thanksgiving is as late as it can be this year and that helps explain why fewer people are planning to shop on Black Friday, Small Business Saturday and Cyber Monday,” says Ted Rossman, senior industry analyst for Bankrate. “The holiday shopping season has started earlier in recent years — for instance, half of holiday shoppers told us they planned to begin their shopping before Oct. 31 this year — and Thanksgiving Weekend has become more of a midseason event rather than the kickoff it used to be.”
Even with late dates, Thanksgiving Weekend can still spell savings for shoppers who have their gift lists ready.
“I budget for the holidays year-round, and my whole family gets their wish lists ready by Thanksgiving at the latest so that we can take advantage of sales that weekend,” says Bankrate senior editor Sarah Gage. “My grandmother started the tradition decades ago, and we still keep it going for the money it saves.”
Black Friday takes lead among Gen Z
For younger consumers, Black Friday is a high priority shopping day. This is particularly true for Gen Z.
The younger generation is likely to lead the charge with Black Friday shopping, with 71 percent of Gen Z (ages 18 to 27) indicating they’ll likely shop on the day after Thanksgiving, closely trailed by 64 percent of millennials (ages 28 to 43).
On the other hand, only 49 percent of Gen Xers (ages 44 to 59) and 38 percent of baby boomers (ages 60 to 78) are likely to brave the Black Friday crowds.
Gen Z on the whole seems to be leading the charge on holiday spending. In another Bankrate survey, 39percent of Gen Z and 32 percent of millennial holiday shoppers expected to spend more this holiday season, despite financial pressures from inflation and sky-high credit card interest rates.
The younger generations’ shopping and spending-fest lines up with growing sentiments around soft saving, where more young adults are prioritizing enjoying present-day pleasures over budgeting, saving and stressing over finances.
Parents, city dwellers hop on Black Friday train
Parents of younger children are also looking to snag holiday deals this year when compared to non-parents. 72 percent of parents with kids under the age of 18 reported they were likely to shop on Black Friday, versus 43 percent of parents with kids over 18 and 52 percent of non-parents.
Area also plays a role, with 62 percent of city dwellers – likely with closer access to retail shops offering Black Friday deals – are likely to shop on that day this year, versus 51 percent of suburban dwellers, 49 percent of town residents and 42 percent of shoppers in rural areas.
For Bankrate insurance editor Natasha Cornelius, Black Friday is the time to snag deals for both gifts and everyday items.
“I always buy my nephews’ presents on Black Friday,” Cornelius says. “They’re six and four so they like toys and toys always seem to have decent deals on Black Friday. I’ve also needed a new dishwasher for months and have waited this long to catch some Black Friday appliance deals.”
Small Business Saturday slips behind
Small Business Saturday is less popular than Black Friday this year, with only 50 percent of Americans indicating that they’re likely to shop the Saturday after Thanksgiving. This is a switchup from last year, where 55 percent of Americans indicated they would shop on Small Business Saturday, 51 percent of Americans in 2023 indicating they’d shop on Black Friday.
“Small businesses are facing an uphill battle this holiday season,” Rossman said. “It’s tough for them to win on price and that’s a major consideration for inflation-weary shoppers.”
Millennials and members of Gen Z are likely to take the lead for shopping on Small Business Saturday.
- Over half (59 percent) of Gen Z and millennials are likely to shop on Saturday.
- 46 percent of Gen Xers will shop the Saturday after Thanksgiving.
- Only 40 percent of Boomers plan to shop on Small Business Saturday.
Cyber Monday surges ahead for most popular shopping day
Cyber Monday has once again taken the crown for what is likely to be the most popular shopping day of the weekend. In all, 59 percent of Americans are likely to log on and look for deals from the comfort of their own computers and phones.
Online shopping can offer several advantages for shoppers, with more convenience, lower prices and access to hundreds of products that might now be available in a physical store. With retail e-commerce revenue growing 6.7 percent in the second quarter of 2024 from the second quarter of 2023, and accounting for 16 percent of all sales, online shopping has cemented itself as a crucial part of retail sales for businesses.
Cyber Monday is a particular draw for both higher-income households.
- 72 percent of respondents with a household income of $100,000 or more said they were likely to shop on Cyber Monday
- 67 percent of those with a household income between $80,000 and $99,999 were likely to shop on Cyber Monday.
- For households that made between $50,000 and $79,999, only 62 percent were likely to shop on Cyber Monday
- Only 53 percent of lower-income households (under $50,000) were likely to shop on Cyber Monday.
Parenthood also plays a role in likelihood to shop on Cyber Monday. Over two in three (71 percent) of parents with kids younger than 18 said they’d be likely to shop on Cyber Monday.
Non-parents trail behind, with 56 percent saying they’d be likely to shop on Cyber Monday, versus only 54 percent of parents with children over 18.
Early holiday deals attract shoppers
Early holiday deals have been a major draw this year. According to Bankrate’s early holiday shopping survey, 38 percent of shoppers planned to begin shopping before Halloween this year,
with 19 percent of shoppers planning to tackle their gift lists beginning in October.
Several large retailers, including Amazon, Target and Walmart, held major sales and promotions in October aimed at snagging the early holiday shopping crowd.
Nearly half – 48 percent – of respondents took part in these promotions, with 32 percent buying non-holiday items. Over one in four (26 percent) bought non-holiday items during October promotions.
Parents in particular were drawn to these early holiday deals, with 65 percent of parents with children under 18 taking part in these early holiday sales. Comparatively, less than half of parents with children ages 18 and over (41 percent) and non-parents (46 percent) took advantage of early October sales.
For small businesses, unique gift ideas and customer service a strength
Small businesses face a unique challenge when it comes to competing with larger retailers, especially as they struggle with managing inflation, staffing and inventory.
According to the data, Americans find large businesses have the advantage with
- Better inventory/availability (76%)
- Lower prices (72%)
- More convenience (57%)
- Easier/faster returns (52%)
On the other hand, fewer respondents found large retailers, when compared to small retailers, offered better product quality (27 percent), unique gift ideas (21 percent) and customer service (20 percent.)
As such, according to respondents, small retailers carry the advantage with:
- Better customer service (61%)
- Unique gift ideas (61%)
- Better product quality (40%)
In order to attract customers and manage this year’s holiday shopping squeeze, small businesses should play to their strengths.
“Large retailers came in hot with deep discounts beginning in early October,” Rossman said. “The best ways for small businesses to differentiate themselves are by combining unique gift ideas with friendly, personalized service.”
How shoppers can support small businesses
Supporting small businesses can help boost your local economy, encourage job growth and vitalize the town you live in. Here’s how you can support your favorite local small businesses this holiday season.
Shop on Small Business Saturday
Small Business Saturday is the highlight of the year for many small businesses. Retail locations will often offer unique deals, host pop-ups, feature events such as holiday photoshoots and team up with other local businesses to bring in traffic.
This year, Small Business Saturday falls on Nov. 30, so start planning now.
Commit to shopping local
Shopping locally helps recirculate money to your local economy, builds community solidarity and brings foot traffic to your downtown. According to the American Independent Business Alliance, for every $100 spent at local businesses, $52.90 is recirculated locally – compared to the $13.60 recirculated by chain stores, shopping locally does more for your town’s economy.
Your town’s Chamber of Commerce page should have a comprehensive list of small businesses you can support. You can also do a cursory Google search for products you’re interested in locally or you could scope out your local downtown for establishments.
Join and share your favorite business’ social media account
Social media is a major point of contact for local businesses, often replacing a traditional website.
See if your favorite business has a Facebook, Instagram or X (formerly Twitter) account, and give them a follow. Sharing posts to your timeline offers free advertising, and tagging a business in a post about your visit can help generate good word-of-mouth.
Buy a gift card
Gift cards help businesses in two ways – not only are you helping them make a sale, but you’re also helping attract more customers to their door when you give the gift card to someone else.
Leave a good review
Reviews are a crucial part of attracting new customers for businesses. According to a survey by BrightLocal, 75 percent of customers consult online reviews from Google, Yelp and other sites when researching a business.
Leaving a good review takes only a few minutes and can go a long way to help support your favorite local businesses.
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