Brigit Report Reveals Increased Spending Among Paycheck-to-Paycheck Shoppers During Black Friday/Cyber Monday 2024
Brigit, a leading financial wellness app, has released its 2024 Black Friday and Cyber Monday spending report, showcasing a significant year-over-year increase in spending among paycheck-to-paycheck consumers compared to 2023. With U.S. retail sales expected to break records, reaching a projected $75 billion over the weekend, Brigit’s data reflects a 5% growth in overall sales and highlights the growing influence of budget-conscious shoppers during this critical retail period.
Brigit’s analysis reveals that its users, who primarily live paycheck to paycheck, spent 12.3% more on average compared to last year. The total average spend per user over the holiday weekend increased to $145.33, up from $129.42 in 2023. This data aligns with broader market predictions of retail growth, signaling that despite financial constraints, consumers are increasingly finding ways to engage in holiday shopping.
Key Insights from the Brigit Report:
- Average Transaction Size:
Shoppers appear to be taking advantage of seasonal deals and discounts, as evidenced by a 5.71% increase in the average transaction size. In 2024, the average single transaction amount was $42.34, compared to $40.05 in 2023. This suggests that consumers are making larger purchases, likely due to the attractive discounts offered by retailers during the Black Friday and Cyber Monday events. - Retailers with the Biggest Spending Increases:
- Temu: This fast-growing e-commerce platform saw a remarkable 19.65% year-over-year increase in spending per user.
- Walmart: As one of the dominant players in U.S. retail, Walmart experienced an 11.11% boost in spending per user, reinforcing its position as a holiday shopping leader.
- Amazon: The global e-commerce giant also saw an 8.68% increase in user spending, continuing to attract bargain hunters during the holiday season.
- Retailers with Spending Declines:
- Macy’s: The department store chain experienced a slight decrease of -4.31% in spending per user, reflecting a shift in consumer priorities.
- Nike: As consumers look for deals, Nike saw a significant dip of -12.33% in user spending compared to 2023, which could be indicative of reduced interest in higher-priced brand-name items.
- Shein: The popular fast-fashion retailer faced the steepest decline in spending per user, with a drop of -16.24% year-over-year. This could point to shifting trends in consumer behavior, with shoppers opting for more sustainable or practical purchases.
- Top Retailers by Total Number of Transactions: As expected, the biggest players in the retail world dominated the number of transactions during the holiday weekend. Walmart, Amazon, and Apple were the most popular merchants in terms of total consumer activity. These retailers continue to benefit from their wide product ranges, global reach, and strong discounting strategies.
Brigit’s CEO Weighs In
Zuben Mathews, co-founder and CEO of Brigit, commented on the findings: “Americans are increasingly finding creative ways to budget effectively and secure the best deals as they navigate the financial pressures of rising costs. The increase in spending during the Black Friday and Cyber Monday weekend signals a clear demand for budget-friendly options, with shoppers placing a high value on holiday deals and discounts.”
Mathews continued, “Retailers who are able to offer these options will continue to see strong demand, and it’s clear that consumers are still eager to spend when they can find deals that stretch their budgets further.”
An In-Depth Look at Paycheck-to-Paycheck Shoppers
The 2024 Brigit report focuses specifically on the spending habits of paycheck-to-paycheck consumers—individuals who allocate the majority of their income to monthly expenses. These consumers face unique financial challenges, but the report shows how they were still able to participate in the Black Friday and Cyber Monday sales, despite living with tight budgets.
The report captures detailed spending patterns across both online and in-store transactions at major U.S. retailers such as Amazon, Walmart, Target, Macy’s, and others. Despite rising costs, these consumers remained committed to shopping for holiday gifts, reflecting the ongoing financial stress many Americans face during the holiday season.
Holiday Shopping as a Stressful Yet Important Ritual
For many Americans, the holiday season brings both financial and emotional strain. Between travel costs, gift buying, and family gatherings, the financial burden of the holidays can be overwhelming. However, the increase in consumer spending over the Black Friday and Cyber Monday weekend shows that shoppers are determined to navigate these challenges and make the holidays memorable for their loved ones. Brigit’s report highlights the resilience and resourcefulness of Americans, particularly those living paycheck to paycheck, as they continue to prioritize the holiday season despite economic pressures.
Methodology
Brigit’s Black Friday & Cyber Monday Spending Report is based on anonymized and aggregated spending data from millions of its users. The report provides an in-depth analysis of spending behavior across major U.S. retailers and popular retail categories. The data covers the shopping period from November 29 to December 2, 2024, with year-over-year comparisons to 2023. This comprehensive study offers valuable insights into consumer behavior, shedding light on how paycheck-to-paycheck consumers navigated the busy holiday shopping period and providing a clear snapshot of current trends in retail and e-commerce.
You can access the full Brigit Black Friday & Cyber Monday report on the Brigit website.
