Inflation: US consumers flock to ‘Black Friday’ deals
US shoppers are out in force for “Black Friday,” but concerns about inflation have left them cautious, prompting retailers in the world’s largest economy to offer increasingly enticing discounts.
As markets and consumers brace for possible turbulence during the transition from President Joe Biden to Donald Trump, there are high hopes that the year’s biggest shopping season — spanning Thanksgiving to Christmas — will be a significant boost for retailers.
The National Retail Federation reported that a record 183.4 million people plan to shop over the weekend, up from 182 million last year and 18.1 million more than in 2019 before the COVID-19 pandemic disrupted the global economy.
Originally a single day marked by frenzied shopping for incredible bargains, “Black Friday” has evolved into a weekend-long event, now complemented by “Small Business Saturday” and “Cyber Monday.”
Adobe Analytics projects consumers will spend a record $10.8 billion online for Black Friday, nearly 10 per cent higher than last year.
Although inflation has eased from its post-COVID peak, Americans remain cautious, as consumer prices are still significantly higher than pre-pandemic levels.
Beatrice Judon, a shopper in her mid-70s, described the situation as “challenging.”
“We hope things get better,” she told AFP after visiting a department store in Washington, D.C. “We just have to wait and see.”
‘Stronger price sensitivity’
Holiday shoppers in 2024 are “even more preoccupied and focused on value and discounts,” said Vivek Pandya, leading insights analyst at Adobe Digital Insights.
Discontent with rising costs was seen as a significant factor behind Vice President Kamala Harris’s defeat by Donald Trump in this month’s presidential election.
“It’s pretty expensive to live in America in general,” said Tyler Austin, 25, who was shopping in downtown Washington for clothing.
Despite concerns about the economy, the NRF projects holiday spending will grow by 2.5 to 3.5 per cent compared to last year, reaching as much as $989 billion over the two-month period.
Target CEO Brian Cornell noted earlier this month that after a prolonged period of inflation, “consumers tell us their budgets remain stretched. They’re becoming increasingly resourceful, waiting until the last moment, focusing on deals, and stocking up when they find them.”
Incomes ‘edging up’
Inflation has hit low-income households particularly hard, with rising charge-off rates suggesting increased financial stress.
However, budget-conscious retailer Burlington Stores has reported strong sales in low-income areas, with CEO Michael O’Sullivan suggesting that for the first time since 2021, “real incomes are finally edging up.”
Wall Street stocks ended higher during the shortened trading session on Friday, with the Dow and S&P 500 indexes both reaching new records.
Thanksgiving, which always falls on the fourth Thursday in November, is as late as possible this year. This shortened shopping season—five days fewer than last year—has pushed retailers to ramp up early promotions.
While Black Friday deals primarily target US shoppers, they also attract tourists and bargain-hunters from abroad.
“We came mostly for the experience, but we’ve found some excellent deals,” said Mario Clemente, a tourist from Guadalajara, Mexico, during a trip to a Los Angeles mall.
“Compared to Mexico, it’s much cheaper to shop here, even with the cost of the hotel and flight.”