Consumers are gearing up for Black Friday, the day when stores offer big discounts and other enticements to lure shoppers. But retailers are worried that this may not be enough to bring in the crowds. With savings dwindling and credit card debt mounting, many shoppers are feeling the pinch. Inflation has eased, but many goods and services such as meat and rent remain much higher than three years ago.
Barbara Lindquist, 85, from Hawthorne Woods, Illinois, is one of the shoppers looking for value this holiday season. She and her husband plan to spend about $1,000 on gifts for their three adult children, 13 grandchildren, and three great-grandchildren—the same amount as last year. To stick to her budget, Lindquist is focusing on deals and buying more gift cards. She recently scored discounted sheets and towels at Kohl’s for friends visiting from Panama during the holidays.
Retailers are also trying to make it easier for shoppers to spread out their spending. Many have ordered fewer goods for this holiday season and have pushed holiday sales earlier in October than last year. Target CEO Brian Cornell told analysts last week that shoppers are waiting longer to buy items such as sweatshirts and denim, which they would have purchased in August or September in previous years.
The National Retail Federation, the nation’s largest retail trade group, expects shoppers will spend more this year than last year, but their pace will slow given all the economic uncertainty. The group has forecast that U.S. holiday sales will rise 3% to 4% for November through December, compared with a 5.4% growth of a year ago.
Online discounts should be better than a year ago, particularly for toys, electronics, and clothing, according to Adobe Analytics. Toys are expected to be discounted on average by 35%, compared with 22% a year ago, while electronics should see 30% cuts, compared with last year’s 27%. In clothing, shoppers will see an average discount of 25%, compared with 19% last year, Adobe said.
Analysts consider the five-day Black Friday weekend—which includes the Monday after the holiday known as Cyber Monday—a key barometer of shoppers’ willingness to spend. And Black Friday is expected to be once again the busiest shopping day of the year, according to Sensormatic Solutions, a firm that tracks store traffic.
Marshal Cohen, chief retail adviser at Circana, a market research firm, believes that shoppers will stick to a list and not buy on impulse. He also thinks that they will take their time buying throughout the season, as there is no sense of urgency.
Overall, this Black Friday will be an interesting one. Shoppers are feeling the pinch, but retailers are doing their best to make sure that they have plenty of deals to entice them. With discounts on toys, electronics, and clothing, shoppers can find great value if they look hard enough. And with the five-day Black Friday weekend, shoppers have plenty of time to find the best deals. So, get ready to shop and save this Black Friday!
