Twin Cities Shoppers Will Spend More Online This Holiday Season
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Twin Cities Shoppers Will Spend More Online This Holiday Season

Holiday sales are expected to surpass $1.1 trillion, Deloitte says. But Minneapolis-St.Paul area shoppers are more frugal than most and likely to spend as much on experiences as gifts this year.

Nearly 70 percent of consumers are feeling optimistic about the economy, but Twin Cities retailers will have to work harder than ever for local shopping dollars this holiday season. According to the 2018 Deloitte Holiday Survey, Minneapolis-St. Paul area shoppers will spend less than the national average, make just over half their purchases online, and divide their buying evenly between gifts and experiences. One bright spot: local consumers expressed a stronger preference for in-store shopping than did the rest of the country.


Deloitte is forecasting a slight uptick in retail holiday sales, from 5 percent to 5.6 percent this year compared to 2017, surpassing $1.1 trillion. That’s more than a quarter of annual US retail sales. Online sales are expected to make up 22 percent of that, jumping from $128 billion to $134 billion.

The Deloitte commissioned survey was conducted in September by an independent research firm which polled 4,036 consumers nationwide. Here are the key findings from the annual survey released today:


  • MSP shoppers are expected to spend $1,238 per household during the holiday season. That’s less than the national average of $1,536 and the projected Midwest spend of $1,401. 

  • 68 percent of shoppers say they think the economy will improve or stay the same in 2019. 

  • MSP shoppers say they’ll spend 55 percent of their budget online and 42 percent in-store. That’s higher than the national in-store average of 36 percent in-store. 

  • Only 11 percent of MSP shoppers plan to use newer technology like voice assisted shopping or seamless checkout. 

  • 49 percent of those surveyed plan to shop Black Friday; 53 percent say they’ll take advantage of Cyber Monday discounts and deals. 

  • MSP shoppers, like the rest of the nation, place more importance on price and quality than an emotional connection or the store environment. 

  • 80 percent of consumers say they will be influenced by promotions. Discounts and free shipping are the most appealing. 

  • 89 percent of shoppers view free shipping as more important than fast shipping. 

  • Only 51 percent of purchases are planned in advance giving retailers plenty of opportunity to impact purchases.

  • 55 percent of those surveyed began their holiday shopping before Thanksgiving. 

  • Although 37 percent of surveyed MSP consumers report they have been impacted by a data breach, most would continue to shop a retailer that experienced a breach if the retailer took action or if they changed.