2023 Deloitte Holiday Retail Survey - Philadelphia

Greater Philadelphia
2023 Deloitte
Holiday Retail
Survey
Holiday spirit (and spending) is back
Cheat sheet
Spending Preferences Timing
Planned holiday spend in Philadelphia increases to $1,842 Preference for shopping online increases marginally among 25% of Philadelphia shoppers' planned
(+20% YoY); 12% higher than the national average spend. Philadelphia shoppers as 69% of their budget is planned to spend is likely to occur before October end
be allocated to shopping online (versus 65% in 2022). and 28% is likely to occur in the last two
The majority (70%) of Philadelphia shoppers are weeks of November (versus 18% and 29%
expecting higher prices this year (versus 80% in 2022), Online-only retailers (62%) and mass merchants (49%) are nationally respectively).
despite moderating inflation. the preferred formats. Preference for online retail stores (+6
percentage points) and specialty clothing retailers stores (+6 The Philadelphia shopping duration is
The $100K-$199K income group in Philadelphia is percentage points) increases YoY and decreases at expected to be an average of 6.1 weeks
expected to increase their holiday spending by $729 (+34% department stores (-8 percentage points) and dollar stores (-5 versus 6.5 weeks in 2022, leaving retailers
YoY). percentage points). with about the same window to engage
customers.
Philadelphia holiday shoppers are budgeting about the Student loan repayment is likely to have minimal impact
same for the same number of gifts (10 versus 10 in 2022) on the overall holiday season in Philadelphia as only 15% 76% of Philadelphia shoppers plan to
and navigating inflation by shopping promotional events of respondents have loans to repay (vs 17% at national levels) participate in Thanksgiving Week
and adding items to their online carts and waiting for deals and 51% of those repaying loans will likely cut back on holiday promotional events such as Black Friday
(57% versus 48% in 2022). expenses. and Cyber Monday (BFCM), as they aim to
counteract increasing prices (compared to
Shoppers plan to allocate a higher proportion of their 22% of Philadelphia shoppers plan to shop during October 54% in 2022).
budget to gift cards (on average $293 versus $266 in promotion events (versus 24% nationally).
2022).
Copyright © 2023 Deloitte Development LLC. All rights reserved.

Source: 2023 Deloitte National Holiday Retail Survey and 2023 Deloitte Philadelphia Holiday Retail Survey
Average expected holiday spend in Philadelphia reaches a new high
Philadelphia consumers, especially the $100k-$199k income group, expect to increase their holiday season spending
Average expected holiday spend Many shoppers are prepared for higher prices …
Four-year Compounded Annual Growth Rate (CAGR)
70%
+6.6% Philadelphia
+2.5% National
of Philadelphia shoppers are expecting higher prices this
year
$1,842
National 72%
$1,544 $1,538
+34%
$1,426 YoY increase in spend for the $100k-$199k income group
$1,322
in Philadelphia; average spend for this group is up by $729
-7% +17% Flat +20%

YoY YoY YoY
Philadelphia RETAIL EXECUTIVES’ VIEW

2019 2020 2021 2022 2023 74% expect holiday sales to
increase YoY.
-7% +5% Flat +14%
National $1,496 $1,396 $1,463 $1,455 $1,652
YoY YoY YoY YoY
Question: “How much do you expect to spend on each of the following items during the upcoming year-end holiday season?”
Note: N = National 4,318; Philadelphia 416.
Retail executives’ view: “What are your expectations about this year’s holiday-related sales at your company compared to last year’s holiday-related sales?” (N = 43).

In line with the national trend, Philadelphia shoppers are likely to increase their
holiday spending
Average expected holiday spending on gifts, non-gifts, and experiences

YoY growth Four- YoY growth Four-
rate in year rate in year
expected spend CAGR expected spend CAGR
$1,842 +20% +6.6%

$1,652 +14% +2.5%
$1,496 $1,538
$1,455 $605 +6% +5.1%
$1,426
$554 +9% +2.0%
Gifts $511 $573
$507 $495
$524 +39% +5.5%

$466 +25% +4.6%
Non-gifts* $389 $373 $377
$422
$632 +10% +1.5% $712 +21% +8.7%

Experiences** $596 $576 $587
$509
2019 2022 2023 2019 2022 2023

National Philadelphia
Notes: N = National 4,318; Philadelphia 416. All dollar values are in US dollar. *Gifts + non-gifts = retail spend; non-gift purchases include clothing for family and self, home furnishings, and holiday decorations.
**Experiences include entertainment at home and socializing away from home, such as restaurants and concert tickets.

Holiday spending in Philadelphia is expected to exceed both the Northeast and
national averages
Philadelphia holiday shoppers are likely to spend 3% more than the Northeast average and 12% more than the national average
Northeast
West $1,792 (+23% YoY)
$1,788 (+9% YoY) Midwest Philadelphia $1,457 in 2022 (-1% YoY);
$1,647 in 2022 (-15% YoY); $1,473 in 2021(-8% YoY);
$1,944 in 2021 (+52% YoY); $1,426 (+19% YoY) $1,599 in 2020 (-5% YoY);
$1,280 in 2020 (-17% YoY); $1,203 in 2022 (-4% YoY); $1,682 in 2019
$1,539 in 2019 $1,255 in 2021 (-12% YoY);
$1,432 in 2020 (+8% YoY);
$1,329 in 2019
South
$1,627 (+10% YoY)
$1,474 in 2022 (+16% YoY);
Average Holiday spend
$1,269 in 2021 (-5% YoY);
$1,331 in 2020 (-10% YoY); National Philadelphia
$1,652 $1,842
$1,475 in 2019

'Tis the season to Expected non-gift spending has seen significant increases in 2023 across all income
restock holiday decor groups surveyed in Philadelphia
and apparel
Average expected spend on non-gift items, by income
82% $373
$466
$377
$524
of Philadelphia shoppers plan to

shop for non-gift items
versus 78% in 2022 Average
National 82% versus 77% in 2022 across all
income levels
2022 2023 2022 2023
Percentage of Philadelphia shoppers planning
to buy non-gift items by category: National Philadelphia
68% non-gift clothing for self or family
59% home/furnishings/holiday decorations
<$50k $190 $223 $150 $225
$50k-$99k $332 $458 $253 $420
$100k-$199k $563 $600 $553 $815
$200k+ $653 $1,001 $782 $1,024
Question: “How much do you expect to spend on each of the
following items during the upcoming year-end holiday season?”

Consumers are checking
their lists and planning Although inflation is moderating, Philadelphia consumers expect higher prices in key
holiday gifting categories
for higher prices
Categories consumers expect to be higher this holiday season2
70%
86%
Food & beverage
85%
80%
Electronics & accessories
of Philadelphia holiday shoppers 82%
surveyed expect prices to be higher
82%
this season1 Clothing & accessories
80%
versus 80% in 2022
National 72% versus 73% in 2022
72%
Home & kitchen
73%
71%
Toys & hobbies
72%
70%
Health & wellness
69%
Questions: (1) “Compared to last holiday season (2022), I expect

58%
holiday prices to be:”; (2) “This holiday season, I expect higher prices Pet
for:” 58%

Gift cards are on
the rise Gift cards are becoming the preferred gift for Philadelphia shoppers surveyed
Philadelphia holiday gift categories ranking^

versus
National
in 2023
$293
average amount that Philadelphia
Clothing &
accessories
Gift cards & other*
Clothing &
#1
Gift cards & other* #2

consumers plan to spend gift cards accessories
versus $266 in 2022
Toys & hobbies Toys & hobbies #3
National $300 versus $217 in 2022
Food & beverage Food & beverage #5

74% of gift card shoppers in
Electronics & Electronics &
Philadelphia expect higher prices #4
accessories accessories
versus 68% of others
National 76% versus 68% of others
Home & kitchen Health & wellness #6
Question: “What percentage of your total holiday budget, excluding

Health & wellness Home & kitchen #7
entertaining at home and socializing away from home spend, do
you expect to spend on the following categories?”
Notes: N = National 4,318; Philadelphia 416. ^Ranking of holiday gift
categories is based on the share of spend, i.e., categories in which
consumers plan to spend the largest proportion of their budget 2020 2021 2022 2023
appear at the top. *Gift cards & other include gift cards
(physical/digital), experiences, and subscriptions.

Source: 2023 Deloitte National Holiday Retail Survey and 2023 Philadelphia Holiday Retail Survey
About half of consumers
As Philadelphia consumers navigate inflation, they report plans to wait for the best deals
surveyed plan to stay and visit fewer stores compared to last year but shop for the same number of gifts
true to budgets this
season National Philadelphia
10
Add items to wish list/online
shopping cart and wait for deals4
Only 55% of Philadelphia
holiday shoppers expect to stay Average number of gifts/gift
57% cards purchased by Philadelphia
within a fixed budget1 54%
versus 58% in 2022 48% 48% holiday shoppers2
National 57% versus 63% in 2022 versus 10 in 2022
National 8 versus 9 in 2022
4.1
RETAIL EXECUTIVES’ VIEW
56% expect retail prices to rise by
single digits, and 19% expect them
to rise by double digits. Average physical stores visited
by Philadelphia holiday
Questions: (1) % agree/strongly agree; (2) “What is the total number of 2022 2023 2022 2023 shoppers3
gifts you expect to buy this holiday season?”; (3) “How many individual versus 6.5 in 2022
physical retail stores do you expect to visit?”; (4) % agree/strongly
agree. National 4.2 versus 5.9 in 2022
Retail executives’ view: “What are your expectations about retail
product prices at your company for your primary product category
this holiday season compared to last year?” (N = 43).

Student loan
Of the 15% starting to repay their student loans in Philadelphia, half may cut back on
repayments are a lump holiday expenditures
of coal for some, but
will likely have National Philadelphia
minimal impact overall Consumers repaying student loans plan to adjust spending by…2
48%
15%
Cutting back on holiday expenditures
51%
of Philadelphia shoppers report 37%

having student loans to repay Cutting back on nonholiday expenditures
37%
this fall1
National 17%
28%
By income: Cutting back on travel expenses
12% Less than $50K 31%
16% $50K–$90K
22% $100K–$199K
3% $200K+
32%
I am not changing my holiday spending plans
Questions: (1) “Do you have any student loans that you need to start 27%
repaying this fall?” (N = National 4,318; Philadelphia 416); (2) “How
are you adjusting your holiday spending as you start repaying your
student loans this fall?” #multi-select (N = National 731, Philadelphia
62).

Savvy spenders plan to make the most of promotional events
Philadelphia shoppers expect to depend more on the October promotions and Thanksgiving sales period to acquire their
holiday gifts
Retail* spend by time period1
22% of Philadelphia National Philadelphia
holiday shoppers plan
to shop during October
promotion events2
National 24%
$296 $314
$283
$204 $224
$184 $199
$163 $143 $126
$10
$4
Before October end Early November Late November Early December Late December January
Share of
18% 25% 16% 18% 29% 28% 22% 18% 14% 11% 1% 1%
spend
6.1 weeks average shopping duration in Philadelphia versus 6.5 weeks in 2022
National 5.8 weeks versus 5.8 weeks in 2022
Questions: (1) “What percentage do you plan to spend during the following months?”; (2) “What holiday shopping events are you likely to participate in?”.
Notes: N = National 4,102, Philadelphia 396 *retail categories include gifts and non-gift spending.

Source: 2023 Deloitte National Holiday Retail Survey and 2023 Philadelphia Holiday Retail Survey
It’s all about the
Both Black Friday and Cyber Monday are favored across all income groups
bargains—Black surveyed in Philadelphia
Friday-Cyber Monday
(BFCM) is back
Shopper participation by shopping event day in Philadelphia
$50K– $100K–
<$50k $200K+
$99K $199K
76%
Thanksgiving Day 8% 10% 7% 8% 7%
of Philadelphia holiday shoppers Black Friday 32% 34% 30% 35% 29%
plan to shop during the
Thanksgiving week
versus 54% in 2022
National 66% versus 49% in 2022 Small Business
Saturday 17% 10% 18% 21% 25%
Cyber Monday 38% 33% 36% 41% 51%
Question: “What holiday shopping events are you likely to participate

in?” #multi-select

Preference for
While national online shopping spending reached an equilibrium point, expected
in-store shopping in Philadelphia online shopping spending saw a marginal increase
Philadelphia holds
steady year-over-year Share of holiday spend, by channel1
RETAIL EXECUTIVES’ VIEW 69%

79% expect in-store holiday shopping 63% 63% 65%
traffic to have at least single-digit
growth YoY (versus 73% in 2022).
35% 37%
33% 31%
Questions: (1) “What percentage of your total holiday budget do you

expect to spend…?
Note: N = National 4,102, Philadelphia 396. In 2022, online + in-
store do not add up to 100% because there was a third option,
2022 2023 2022 2023 2022 2023 2022 2023
“Other” = National 2%, Philadelphia 2%.
Retail executives’ view: “What are your expectations for your Online In-store
company's holiday shopping traffic compared to last year's holiday
season?” (N = 43).

Loyal customers
Online retailers and mass merchants are the preferred retail formats in Philadelphia
prioritize their
favorite retailers for
Top 12 preferred retail formats for holiday shopping1
holiday spending
77%
2022 2023 2022 2023
Online/e-commerce retailers 56% 63% 59% 65%
Mass merchants 49% 53% 48% 49%
of consumers often or always shop
Local independent stores 24% 27% 28% 28%
at their favorite retailer
National 76% Department stores 25% 24% 34% 26%
Off-price stores 26% 25% 23% 25%
Consumers plan to spend the most (2023) at:2 Bookstores 21% 22% 23% 23%
Specialty beauty retailers 18% 22% 19% 23%
41% Online-only retailers National 37%
14% Mass merchants National 16% Specialty clothing retailers 13% 16% 14% 20%
5% Electronics National 4%
5% Department stores National 4% Electronics/Office supply/Computer stores 19% 21% 23% 20%
4% Local independent stores National 27%
Warehouse membership clubs 25% 24% 23% 20%
Pet products stores 15% 17% 16% 20%
Questions: (1) “Where do you plan to shop for gifts this holiday
season?”; (2) “Where do you anticipate spending the most money
Dollar stores 15% 16% 13% 18%
this holiday season?”
Note: Formats where year-over-year change is more/less than +/-2 p.p. (National) and +/-5 p.p. (Philadelphia) are in bold.

Consumer survey Executive survey
About National
Timing
August 30 to September 08, 2023
Timing
June 23 to June 30, 2023
the
Sample
Sample
The survey polled 43 retail industry
The survey polled a national sample of 4,318 consumers and has a margin of
executives, of which 93% were
error of plus or minus one to two percentage points for the entire sample.
survey
from retailers with annual
Philadelphia DMA* revenues of $1 billion or more. The
Timing executives included buyers, senior
August 30 to September 18, 2023 buyers, and buying/ merchandising
Sample managers who had a medium or
The survey polled a sample of 416 consumers from Philadelphia DMA* and has high level of involvement in buying
a margin of error for the entire sample of plus or minus five percentage points. and merchandizing for the coming
holiday season.
*DMA (Designated Market Area) includes a few zip codes beyond city limits.
Methodology
The surveys were developed by Deloitte and conducted online by independent research companies.
Thank you
The authors would like to thank Brooke Furman, David Levin, Srinivasarao Oguri, Rithu Mariam Thomas, Negina
Rood, Kianna Sanchez, Michele Stoffel, and Anupam Khatri for their contributions to this survey.
Consumer Industry Center Retail Team
Lupine Skelly Ram Sangadi Kusum Raimalani Sangharsh Shinde

Research Leader Associate Vice President Analyst Analyst
Deloitte Consumer Industry Center
The Deloitte Consumer Industry Center provides premiere insights based on primary research on the most prevalent issues facin g the consumer
industry to help our clients run effectively and achieve superior business results. The center is your a trusted source for information on leading
trends and research that connect insights, issues, and solutions for Deloitte’s four consumer sectors: automotive; consumer p roducts; retail,
wholesale, and distribution; and transportation, hospitality, and services.
About the Deloitte Retail practice

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Greater Philadelphia

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-7% +17% Flat +20%

Philadelphia RETAIL EXECUTIVES’ VIEW

Copyright © 2023 Deloitte Development LLC. All rights reserved.

Average expected holiday spending on gifts, non-gifts, and experiences

$1,842 +20% +6.6%

$524 +39% +5.5%

$632 +10% +1.5% $712 +21% +8.7%

2019 2022 2023 2019 2022 2023

Copyright © 2023 Deloitte Development LLC. All rights reserved.

Copyright © 2023 Deloitte Development LLC. All rights reserved.

of Philadelphia shoppers plan to

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Questions: (1) “Compared to last holiday season (2022), I expect

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Philadelphia holiday gift categories ranking^

Gift cards & other* #2

Food & beverage Food & beverage #5

Question: “What percentage of your total holiday budget, excluding

Copyright © 2023 Deloitte Development LLC. All rights reserved.

Copyright © 2023 Deloitte Development LLC. All rights reserved.

of Philadelphia shoppers report 37%

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Cyber Monday 38% 33% 36% 41% 51%

Question: “What holiday shopping events are you likely to participate

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RETAIL EXECUTIVES’ VIEW 69%

Questions: (1) “What percentage of your total holiday budget do you

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Consumer Industry Center Retail Team

Lupine Skelly Ram Sangadi Kusum Raimalani Sangharsh Shinde

About the Deloitte Retail practice

Copyright © 2023 Deloitte Development LLC. All rights reserved.

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