Black Friday has proven to be a successful shopping day in the US, with retailers generating a record-breaking $9.8 billion in sales. Consumers spent a record $9.8 billion online on Black Friday, a 7.5% increase from the previous year. In-person sales also saw a 4.6% increase in shopper visits compared to the previous year [0cc95b51]. Thousands of retailers offered deals and discounts, attracting consumers amidst economic uncertainty caused by high inflation and the lingering effects of the COVID-19 pandemic. This year's Black Friday sales occurred both in physical stores and online, with consumers taking advantage of the various offers available [c0bc98fe] [f4370f4a].
Despite the success of Black Friday sales, concerns remain about the overall holiday shopping season. US consumers are holding out for deeper discounts, indicating a subdued shopping season and potentially lackluster earnings results for retailers. Brick-and-mortar sales estimates are not yet available, but online sales are expected to grow only 1% in November and December compared to the previous year, the slowest growth in at least five years. Shoppers are unimpressed by the discounts offered and are likely to wait for better sales. Retailers may need to cut prices further to boost sales or sell excess merchandise, potentially impacting profits. However, some of the consumer pullback is seen as a return to a more normal pace of shopping. Last year's deep discounts conditioned shoppers to expect even better sales this year. Shoppers are advised to wait for deeper discounts on toys, apparel, electronics, and furniture [c0bc98fe] [f4370f4a] [61f9800a].
The National Retail Federation (NRF) predicts that over 182 million consumers will shop in stores and online during the Thanksgiving weekend, surpassing last year's numbers. Hot items this holiday season include Lego, Hot Wheels, and Barbie. US retailers are expected to offer even deeper discounts this year to attract consumers amidst concerns about the economy. Experts recommend waiting until December for even bigger markdowns. The NRF projects holiday sales growth of 3-4%, returning to pre-pandemic levels. However, interest rates remain high, and households have less excess cash compared to last year due to the end of pandemic relief programs and the expiration of the student loan moratorium [89496c98] [d1f57c11].
Economic experts have noticed a trend of decreasing discounts on Black Friday in recent years. Companies are toning down their Black Friday sales and focusing more on profitability rather than revenue. Higher costs for the supply chain during Black Friday also contribute to this shift. Despite lower discounts, officials believe that consumers will benefit overall as reducing costs can lead to lower prices for consumers [61f9800a].
UK retailers are increasing their Black Friday discounts in an attempt to boost sales, but customers are cutting back on spending. The article highlights that retailers are facing a challenging holiday season due to the ongoing pandemic and economic uncertainty. Despite offering significant discounts, many retailers are struggling to attract customers who are cautious about their finances. The article also mentions that online sales are expected to surge during the Black Friday period, as more people choose to shop from the safety of their homes [61f9800a].
Black Friday sales have provided a positive indicator for the US economy, with consumers spending a record $9.8 billion online and a 4.6% increase in in-person sales compared to the previous year. However, concerns about the overall holiday shopping season persist, with shoppers holding out for deeper discounts. The National Retail Federation predicts heavy consumer traffic during the Thanksgiving weekend, but experts recommend waiting until December for even bigger markdowns. Despite decreasing discounts on Black Friday in recent years, officials believe that reducing costs can lead to lower prices for consumers [0cc95b51].
Americans set an online spending record on Black Friday, with total sales reaching $9.8 billion, up 7.5% from last year. However, this strong consumer spending may be masking the larger issue of increasing debt. Many Americans are relying on buy now, pay later programs to have more flexibility when their budget is tight. Klarna, a popular buy now, pay later platform, observed a nearly 30% increase in orders placed by US shoppers on Black Friday compared to last year. This trend, coupled with recent upticks in credit card delinquencies and accounts behind on payments, suggests that some consumers are beginning to struggle with their debt. Despite this, Americans have not reduced their spending over the past year, even as their savings accounts deplete. The reliance on buy now, pay later programs and the tendency to spend more when using them may indicate overconfidence in what consumers can afford. Additionally, more people than usual waited until Friday to make their purchases, suggesting pressure to find the best deals. [f46d665c] [84b9cc9c]