With the holidays quickly approaching, Deloitte’s retail strategy and business transformation principal Brian McCarthy joins Brad Smith on Wealth! discuss what’s expected to be a record-breaking shopping season.

“We're seeing after this year of frugality and restraint, consumers are feeling a bit more optimistic about the economy. They're planning to have a very festive holiday season,” McCarthy tells Yahoo Finance. Deloitte’s latest holiday retail survey found that consumers plan to spend a record-high average of $1,778, up 8% from the 2023 survey.

“The reason holiday shoppers are going to spend higher this year is driven primarily through a rosier economic outlook,” coupled with “the perception of just higher prices as 70% of shoppers still believe their prices for gifts this year will be higher than last year.”

As consumers look for the best value, some are straying away from brand loyalty and prioritizing price and quality over the name. “With the perception of higher prices still top of mind, consumers are really caught between trying to stretch their wallets and being festive and so this really means they're torn between seeking value and remaining loyal.” Deloitte’s survey shows that two-thirds of shoppers are going to switch brands, while half are willing to switch retailers to save.

For consumers looking to save without cutting down their holiday list, McCarthy says, “shoppers are encouraged to explore multiple retailers to look for a competitive deal or a price point that they think is going to work for them.” He adds, “I have found AI is a really interesting thing to start asking for where you may find particular products or promotional deals so you can use technology to be a bit more savvy that way.”

To watch more expert insights and analysis on the latest market action, check out more Wealth here.

This post was written by Naomi Buchanan.