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2023 Holiday Spending Expected to Reach Record Levels and Cash Back is King

By Elisa Tavilla
November 2, 2023
in Analysts Coverage, Holiday Shopping, Merchant
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As consumers prepare for the holiday shopping season, RetailMeNot is launching its fifth annual Cash Back Day to help shoppers maximize holiday spending savings. For the first time, the event will run for three full days from November 2–4, 2023, offering up to 30% cash back at thousands of retailers across categories including apparel, beauty, electronics, travel, and more. Whether buying gifts for others or shopping for themselves, consumers can take advantage of significant savings opportunities. Historically, shoppers have earned an average of $18 cash back per order, and RetailMeNot has paid out nearly $1.3 million during its previous four Cash Back Day events.

Cash back tends to be consumers’ preferred loyalty reward when choosing where to shop and how to pay. In a study by Valuedynamx, 50% of cardholders cited cash back as the most desired benefit due to the versatile nature of redemption options.

The National Retail Federation today also published its 2023 holiday spending forecast, anticipating consumer spending to reach record levels during November and December and will grow between 3% and 4% over 2022 to between $957.3 billion and $966.6 billion. Despite inflation, higher interest rates, and stringent credit conditions, “[w]e expect spending to continue through the end of the year on a range of items and experiences, but at a slower pace. Solid job and wage growth will be contributing factors this holiday season, and consumers will be looking for deals and discounts to stretch their dollars,” said NRF Chief Economist Jack Kleinhenz in a press release.

Additionally, a Deloitte survey found that holiday spirit and spending have rebounded. Consumers are expected to spend an average of $1,652 this season, surpassing pre-pandemic levels for the first time. Two-thirds of consumers plan to participate in promotional events, such as those during the week of Black Friday through Cyber Monday.

Consumers are shopping for the best deals and perfect gifts across channels this holiday season. Mastercard anticipates e-commerce sales to increase by 6.7% and in-store sales to increase by 2.9% YOY. “We expect the most effective holiday strategy will be to meet consumers where they are – personalized promotions to in-store experiences will be key in doing so,” said Steve Sadove, senior advisor for Mastercard and former CEO and Chairman of Saks Incorporated.

Shoppers will have no shortage of opportunities to take advantage of generous deals, extra savings, and enhanced cashback offers this holiday season. Promotional events like RetailMeNot’s Cash Back Day, Bank of America’s upcoming More Rewards Day, and Black Friday, Small Business Saturday, and Cyber Monday deals will allow consumers to spend and save more as they shop at large and small retailers in stores and online.    

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Tags: cash backDeloitteMastercardNational Retail FederationRetailMeNotRewards

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