Consumers Finance Halloween Spending Amid Rising Costs
A survey by Deloitte found that one in five U.S. consumers plans to use buy now, pay later or other financing options for their Halloween purchases due to increased expenses.
Halloween spending in the U.S. has become a significant financial concern, with a survey of 1,500 consumers indicating that up to one in five are planning to finance their holiday purchases using installment plans or similar financing methods.
Deloitte's research reveals the average consumer expects to spend approximately $285 on Halloween this year. Of this amount, $219 is allocated for retail purchases and $66 for experiences. The majority of shopping, 67 percent, is still conducted in physical stores.
More than a third of consumers, specifically 34 percent, anticipate spending more than they did last year, while only 11 percent plan to decrease their expenditures. Comfortably affording these costs is a challenge for many, with only 71 percent stating they can manage their planned spending, and nearly a third expecting financial difficulties.
The rising costs are likely a primary driver for consumers seeking financing options. This trend aligns with previous findings from Bain & Company, which projected retail sales growth for November and December, partly fueled by inflation, potentially exceeding $1 trillion for the first time.
Consumers are also exploring the use of artificial intelligence (AI) in their shopping decisions. One-fifth of respondents intend to utilize generative AI tools for recommendations and price comparisons, with this figure rising to 32 percent among those planning to shop early for the holiday.