NEW YORK — After weeks of increasingly attractive discounts, retailers in the U.S. and several other countries are gearing up for prime time. Although Black Friday has lost some of its luster, it's still the bargain bonanza that reigns as the unofficial kickoff to the holiday shopping season. .
Department stores, shopping malls, and retail stores large and small are using the day after Thanksgiving to energize shoppers and encourage them to visit brick-and-mortar stores at a time when many gift-seekers are content to shop online. It is seen as a means of guidance.
There are enough traditionalists that Black Friday continues to be the busiest day of the year for retail stores.
“I'm really looking forward to it,” Texas resident Emily Phillips said during a visit to the Galleria Dallas last week. “I save up all the things I want all year long and usually get them around Black Friday. I prefer to shop in person so I can try them on. It's a better experience.”
In the United States, analysts expect a strong holiday season, perhaps not as strong as last year, as many shoppers remain under financial pressure and cautious about discretionary spending, even as inflation eases. I expect it to be.
With five fewer days between Thanksgiving and Christmas this year, retailers will work harder to get shoppers to buy in bulk early.
Mall of America in Bloomington, Minn., is giving away a $25 gift card to the first 200 people in line at the center's north entrance.
Target is offering an exclusive book dedicated to Taylor Swift's Elas Tour and a bonus edition of her album The Tortured Poets Department: The Anthology. These will be available in stores only on Black Friday, and customers will be able to purchase them online starting Saturday.
Best Buy has introduced an extended release version of its doorbusters, the limited-time daily discounts that were all the rage for years before the coronavirus pandemic, sometimes sparking actual brawls.
The country's largest consumer electronics chain is releasing a doorbuster sale every Friday starting Nov. 8 on its app, online and in stores, and plans to continue the weekly promotion until Dec. 20.
“(Stores) are desperate for a strong Black Friday,” said Marshall Cohen, chief retail advisor at market research firm Circana. “They realize they can't win big by winning online because the pie is so competitive. They have to find a way to win in-store.”
Cohen said impulse buys and gifts for yourself are areas where sales can grow significantly, and without them the business would not grow.
According to research from Circana, shoppers are three times more likely to make an impulse purchase in-store than online.
Shoppers increased their spending at U.S. retail stores in October, according to the Commerce Department.
Sales at auto dealerships led most of the increase, but purchases at electronics and electronics stores, bars and restaurants also increased, a sign of healthy consumer spending.
But the latest quarterly results from Best Buy, Target and other retailers highlighted that some companies have an easier time getting customers to part with their cash than others.
Walmart, the largest U.S. retailer, is heading into the holiday season with a bang, with better-than-expected third-quarter sales of toys, household goods and groceries.
But Target reported weaker quarterly sales as cautious consumers cut back on spending on apparel and other non-essential items.
Many retailers moved their holiday sales earlier than last year to October to help shoppers spread out their spending.
Shoppers were distracted by this month's U.S. presidential election. General merchandise sales fell 9% in the two weeks to Nov. 9, Sarcana said, but have rebounded since the election.
The National Retail Federation predicted shoppers' spending would increase 2.5% to 3.5% in November and December compared to the same period last year. Spending during the 2023 holiday shopping season increased by 3.9% compared to 2022.
Online sales this year so far this holiday season have exceeded expectations, according to Adobe Digital Insights, a division of software company Adobe.
U.S. consumers spent $77.4 billion online from November 1 to November 24, an increase of 9.6% from the same period last year. Adobe projected an 8.4% increase over the season.
Despite the early sales, Adobe says there will be better deals on Black Friday. Analysts believe that the five-day Black Friday, which includes Cyber Monday, will be an important barometer of consumer confidence for the rest of the season.
Vivek Pandya, principal analyst at Adobe Digital Insights, said shoppers are paying more attention to discounts than last year, and their focus on bargain-hunting will dictate what sells and when.
For example, Adobe's analysis shows that Thanksgiving Day is the best time to shop online, with the deepest discounts on sporting goods, toys, furniture, and electronics. However, Black Friday is the best time to buy a TV online.
According to Adobe Digital Insights, TV buyers at the beginning of the season saw an average discount of 10.8%, but if they wait until this Friday they can expect a 24% discount.
However, Cyber Monday is expected to be the best time to buy clothes, phones, computers and other devices online.
According to Adobe, discounts on electronic devices peaked at 10.9% off manufacturer's suggested prices from November 1st to November 24th, and are expected to reach 30% off on Cyber Monday.
According to Adobe's research, overall Black Friday weekend discounts should peak at 30% on Cyber Monday and fall to around 15% thereafter.
For brick-and-mortar stores, the day after Thanksgiving is once again slated to be the busiest single shopping day of the season, according to Sensormatic Solutions, a retail technology company that tracks retail foot traffic.
“Black Friday remains a very important day for retailers,” said Grant Gustafson, head of retail consulting and analytics at Sensormatic. “Being able to drive shoppers into stores and show them the experience of what it's like to view, touch, and feel products is important. It can also be a clue as to what will happen in the season.”
Mall of America aims to surpass last year's 12,000 shoppers within an hour of its 7 a.m. opening.
“People come to get the deals, but more importantly, they come for the excitement, energy and tradition associated with Black Friday,” said Jill Renslow, the mall's chief business development and marketing officer. “I'm working on it,” he said.
