annual”black Friday“It can be said thatretail sellerAnd the war between consumers, one side trying to make sales high point, the other side solely aiming for the most cost-effective discount. Although Black Friday is on the 24th this year, Best Buy,Macy’s Department StoreRetailers such as (Macy’s), H&M and pure e-commerce merchants such as Shein and Teemu have already started promotional activities, but the purchasing momentum this year may not be as strong as before.
Starting promotions early could help retailers anticipate consumer demand this year, as product shortages could be one of the biggest problems: The Panama Canal’s water level is dropping due to severe drought, Reuters reports. Due to which freight transportation has been affected.
“Black Friday” and “Cyber Monday” (Cyber Monday, which falls on the 27th this year) are typically the busiest shopping periods in the United States. According to the National Retail Federation (NRF), 196.7 million consumers participated in promotions during last year’s shopping season, and spent an average of $325.44, a record high.
But Dana Telsey, CEO of Telsey Advisory Group, said Black Friday shopping this year won’t be as popular as in past years because Christmas falls on a Monday, and most people may wait until the weekend before Christmas to decide what to buy.
The NRF estimates that holiday sales in U.S. stores and online will increase 3% to 4% during November and December, the smallest increase in five years. Retail analytics firm Sensormatic Solutions expects in-store traffic during the holiday season to be down 3.5% from last year. Labor shortages are also a challenge for many retailers, so they’ve heavily promoted online shopping and curbside pickup this year.
What consumers are most concerned about: Can they get a great deal this year? According to Reuters analysis, many major retailers from Dollar General to Walmart to Macy’s may face the pressure of excess inventory for the second consecutive year; Analysts believe resumption of school loan repayments and rising costs of housing and essential commodities are weighing on household budgets. Retailers will have to rely on promotions and early bird discounts to maintain sales during this year’s shopping season.
Jane Hawley & Associates, a market research firm, reported that in the lead up to Black Friday, discounts at Kohl’s and Macy’s reached 60%, and foot traffic at both these retailers and Nordstrom was similar to last year. The ratio has declined. Adobe Analytics estimates that the biggest discounts for online shopping will be on toys, reaching 35%, followed by sporting goods at 24% and furniture at 19%. A report from MasterCard predicts that electronic products will be the preferred category for this year’s shopping season, with growth expected to reach 6%.