Philadelphians plan to spend $1,842 on gifts, decor, and more this holiday season
That's more than the national average, according to Deloitte's annual holiday survey, and a 20% jump over what area consumers were budgeting last year.
Some Philly shoppers are ready to spend big this holiday season, despite broader consumer pessimism, the restart of student loan payments, and depleted pandemic savings.
Philadelphians are planning to spend $1,842 on average, about $200 more than shoppers across the country, according to Deloitte’s annual holiday survey, which accounts for spending on gifts, non-gift retail purchases, and seasonal experiences at home, at restaurants, or in other social settings.
The number represents a 20% jump over what local consumers had budgeted for last year’s holiday season.
Philadelphians expect to buy the same number of gifts (10 on average), according to the survey, but anticipate higher prices. They also plan to make more room in their budgets for experiences and non-gift purchases, such as home furnishings and holiday decorations.
The results come a week after the Philadelphia region ranked among the top three U.S. metropolitan areas for in-person holiday shopping, according to a Bankrate report. A senior data reporter who conducted the Bankrate survey found Philadelphia residents had more disposable income and less credit card debt relative to other metro areas.
Analysts from Bankrate, Deloitte, and the National Retail Federation are projecting that holiday spending will surpass pre-pandemic levels for the first time, at the same time that consumers want to take greater advantage of deals and promotions, including during Thanksgiving week.
“Although inflation shows signs of moderating, consumers have come to expect higher prices and are adjusting their holiday spending accordingly,” Nick Handrinos, vice chairman of Deloitte, said last month in a statement. “We expect to see shoppers make their lists and check them twice for deals, but a return to pre-pandemic spending levels shows promise for the season overall.”
Here are other key takeaways from Deloitte’s Philadelphia report:
Student loan payments to have small impact on holiday spending
About 15% of Philadelphians surveyed said they are repaying student loans, and 51% of those borrowers said they plan to cut back on holiday spending due to this fall’s resumption of payments. 27% said they do not plan to change their spending habits because of loan payments.
Experiences and gift cards at the top of Philly’s lists
Local consumers plan to spend 21% more on experiences this year, allocating $712 on average to holiday meals out, festive parties at home, and seasonal concerts.
As for gift spending, gift cards are an increasingly popular option. They’re the No. 1 present of choice for shoppers in the United States and in the Philadelphia metro area, where consumers anticipate spending nearly $300 on gift cards.
Black Friday, Cyber Monday more popular this year
During Thanksgiving week, expect 76% of Philadelphia shoppers to be taking advantage of Black Friday, Cyber Monday, and other deals, up from 54% last year. It’s more popular in this region than it is nationally.
Cyber Monday rules the week in Philly, with 38% of consumers expecting to shop that day. 32% say they’ll be out on Black Friday.
The survey, released Monday, polled more than 4,300 customers nationwide, including more than 400 in the Philadelphia metro area (includes some zip codes outside city limits), from Aug. 30 through Sept. 8. It was conducted online by independent research companies.