Black Friday, the annual shopping extravaganza, has undergone significant changes in recent years. The US, known for its bustling retail industry, is experiencing economic uncertainty due to high inflation and the lingering effects of the Covid-19 pandemic. As a result, retailers are offering even deeper discounts to attract consumers amidst concerns about the economy. The National Retail Federation (NRF) predicts a surge in consumer traffic, with over 182 million shoppers expected to participate in the weekend sales. Despite the challenges, the NRF projects overall holiday sales growth of between three and four percent, signaling a return to pre-pandemic trends [c21772dc].
However, consumers in the US face obstacles such as high interest rates, reduced cash flow compared to last year, and the expiration of the student loan moratorium. Recent layoffs and meager bonuses in high-paying industries have also impacted consumer spending. President Joe Biden's shopping trip in Nantucket highlights the significance of Black Friday as the start of the holiday shopping season. The Macy's department store in Manhattan saw crowds of shoppers when it opened early on Black Friday. Meanwhile, Amazon faced strikes in Britain, Germany, and Italy as workers demanded higher wages and better conditions [c21772dc].
The US economy heavily relies on retail performance, and the holiday season is crucial for retailers' year-end performance. While there are concerns about the outlook for 2024, the NRF remains optimistic about the strength and resilience of the consumer sector. Economic experts have noticed a trend of decreasing discounts on Black Friday in recent years. Companies are toning down their sales and focusing more on profitability rather than revenue. Higher costs for the supply chain during Black Friday are also a factor. Despite lower discounts, officials believe that reducing costs can lead to lower prices for consumers [f8910906].
In Nigeria, many online shoppers distrust Black Friday sales, believing that e-commerce companies inflate prices before offering discounts. Despite these concerns, major Nigerian e-commerce companies continue to announce bigger sales each year, turning Black Friday into a month-long event. The Nigerian version of Black Friday sales started online in 2013 by Jumia and Konga, aiming to replicate the excitement of rush retail sales seen in the US, UK, and other countries [f8910906].
Overall, Black Friday in the US and Nigeria is a mix of concerns and resilience in the face of economic challenges. Retailers are offering deeper discounts to attract consumers, but concerns about inflation, reduced cash flow, and high interest rates contribute to economic unease. The holiday season remains crucial for retailers' year-end performance, and the NRF predicts heavy consumer traffic. The rise of online shopping has transformed the traditional image of Black Friday, but experts believe that reducing costs can benefit consumers by leading to lower prices [f8910906].