NEW YORK — It’s time for the biggest shopping event of the year.
After weeks of early promotional sales, retailers in the United States and select other regions are gearing up to provide enhanced discounts on Black Friday. This iconic shopping day, which unofficially marks the beginning of the holiday season, still holds significant importance, even though it may have slightly lost its attraction over the years.
Various retailers, from department stores to local merchants, view the day after Thanksgiving as a critical opportunity to invigorate shoppers and draw them into brick-and-mortar locations, especially as many consumers today prefer to shop online for their holiday gifts.
According to Sensormatic Solutions, a retail technology company, Black Friday continues to generate the highest foot traffic for U.S. retailers throughout the year.
Grant Gustafson, head of retail consulting and analytics at Sensormatic, highlighted its importance: “Black Friday is essential for retailers. It offers them a chance to bring shoppers into stores, allowing them to experience the products firsthand. It’s also an important indicator of what to expect for the rest of the holiday shopping season.”
In the United States, analysts predict a promising holiday shopping season, although perhaps not as strong as the previous year, due to ongoing financial pressures causing shoppers to be more cautious with their discretionary spending—despite the easing inflation.
Retailers will strive harder to attract early bird shoppers this year, especially since the gap between Thanksgiving and Christmas has shrunk, with five fewer days available for holiday shopping.
Mall of America in Bloomington, Minnesota, aims to exceed last year’s count of over 12,000 shoppers who flooded in during the mall’s 7 a.m. opening. The mall plans to incentivize the first 200 customers in line at its north entrance with a $25 gift card.
Jill Renslow, the mall’s chief business development and marketing officer, stated, “While people come for the deals, they also seek the excitement, energy, and traditions that accompany Black Friday.”
Retail giant Target is set to offer a unique book dedicated to Taylor Swift’s Eras Tour, along with an exclusive edition of her album, “The Tortured Poets Department: The Anthology.” This special edition will be available only in stores on Black Friday before being offered online the following day.
In a similar move, Best Buy has rolled out a series of doorbuster deals every Friday since November 8, extending the popular limited-time sales through December 20.
“Retailers are eager for Black Friday to perform well,” said Marshal Cohen, chief retail advisor at the market research firm Circana. “With online competition increasing, they need to find ways to succeed in physical retail.”
Impulse buying and self-gifting represent significant potential for growth in sales, as Cohen suggests that without these, overall business won’t see an increase. Circana’s research indicates that shoppers are three times more likely to make impulse purchases in-store compared to online.
The National Retail Federation anticipates that shopper spending in November and December will rise by 2.5% to 3.5% over the previous year, following a 3.9% increase during the 2023 holiday period compared to 2022.
So far this season, online sales performance has surpassed expectations. According to Adobe Digital Insights, U.S. consumers have spent $77.4 billion online from November 1 to November 24—an increase of 9.6% compared to the same timeframe last year. Adobe forecasts an 8.4% rise in online spending for the entire season.
Despite earlier sales, experts indicate even better discounts are anticipated on Black Friday. The five-day Black Friday weekend, which includes Cyber Monday, is considered a vital indicator of consumer spending willingness for the remainder of the holiday season.
Vivek Pandya, the lead analyst at Adobe Digital Insights, noted that shoppers are increasingly conscious of discounts compared to last year, and their focus on seeking bargains is expected to influence purchasing patterns.
For instance, Adobe’s analysis reveals that Thanksgiving Day is ideally suited for online purchases of sporting goods, toys, furniture, and appliances to secure the best discounts. Conversely, Black Friday is the prime time for purchasing televisions online, with anticipated savings rising from an average of 10.8% for earlier shoppers to about 24% for those waiting until Friday.
Cyber Monday is projected to be the top day for buying apparel and gadgets such as smartphones and computers online. Before Thanksgiving, electronics saw discounts peak at 10.9% off the suggested retail price, but these are expected to escalate to 30% on Cyber Monday, according to Adobe.
Overall, discounts during the Black Friday weekend are expected to peak at around 30% on Cyber Monday before tapering off to approximately 15%, according to research findings from Adobe.