As the 2024 holiday shopping season approaches, U.S. retailers are poised for a strong performance, with holiday spending forecasted to grow by 2.5% to 3.5%, reaching between $979.5 billion and $989 billion. This optimistic outlook is supported by a rise in average spending per shopper, which is expected to reach $902, significantly up from $620 in 2023. The National Retail Federation (NRF) previously indicated that consumer sentiment has risen to 71.8 in November, the highest level since April, and GDP grew at an annual rate of 2.8% in the third quarter, creating a favorable economic backdrop for holiday shopping.
Despite a late Thanksgiving resulting in five fewer shopping days, over 197 million Americans are expected to shop from Thanksgiving to Cyber Monday, with Black Friday remaining the most popular shopping day. In Nevada, approximately 1.9 million residents are projected to shop during this period, reflecting a 3.7% increase from last year. Bryan Wachter from the Retail Association of Nevada noted that 57% of shoppers are motivated by discounts, while 28% are driven by tradition.
Nationally, Black Friday attracted 81.7 million in-store shoppers and 87.3 million online, with online shopping expected to account for 56% of holiday purchases. The NRF reported that Black Friday sales reached a record $13.3 billion, a 7.3% increase from the prior year. Mobile shopping has surged, with 63% of Cyber Monday online shoppers making purchases via their smartphones. TikTok Shop experienced a threefold increase in Black Friday sales, surpassing $100 million, as major brands expand their partnerships with the platform.
In Nevada, retail sales are projected to grow by 3% to $6.4 billion, with nonstore retail sales reaching $6.6 billion, an 8.9% year-over-year increase. Popular gifts this season are expected to include clothing (49%), toys (31%), and gift cards (27%). Retailers are also expected to hire between 400,000 to 500,000 seasonal workers to meet the anticipated demand. The retail industry supports over 25% of U.S. jobs, contributing $5.3 trillion annually.
Despite ongoing economic challenges, including inflation at 2.3% in October, close to the Federal Reserve's 2% target, the holiday shopping trends indicate a resilient consumer base. Additionally, 41% of consumers plan to travel during the holidays, with Gen Z leading at 68%. The overall online spending for the five-day holiday weekend reached $41.1 billion, reflecting an 8.2% rise from last year. As consumers navigate a shorter shopping season, the positive performance of e-commerce stocks and the popularity of buy-now-pay-later services have contributed to increased spending. Wall Street responded favorably, with both the Dow and S&P 500 closing at record highs. Meanwhile, President Biden emphasized the importance of supporting local businesses amidst inflation concerns, and Target's CEO noted that consumers are becoming increasingly resourceful and budget-conscious. [b2e81496][92278ffb][8f59358c][a228c698][c21a51ba][04cd2d2e][b0b8fcdf][3dc87158][90249701][957eb773][66d50046][510da705][641360e0][3aa01127][9bfdaa82]