Black Friday events appeared to draw lackluster crowds this year, with shoppers focused on discounts and bargains after curbing spending ahead of what is expected to be the weakest holiday season in five years.
The National Retail Federation expects overall sales to rise 3% to 4% in November and December (the slowest pace in five years) compared to last year’s 5.4% increase and 12% increase. .7% in 2021 after the worst of the pandemic.
At 6 a.m. Friday at a Walmart in New Milford, Connecticut, the parking lot was only half full, according to Reuters.
“This year it’s a lot calmer, a lot calmer,” said shopper Theresa Forsberg, who visits the same five stores with her family at dawn every Black Friday. She was at a nearby Kohl’s store at 5 a.m., according to the news service.
Between mid-October and mid-November, inflation-affected consumers spent 7% less than a year ago, as they bought 6% fewer items than a year ago, according to research firm Circana. Target and Macy’s are among the big chains that have seen their sales decline lately.
“Consumers have been holding back,” said Circana senior industry adviser Marshal Cohen. CNBC.
Retailers are bracing for modest growth as shoppers continue to grapple with high prices for everything from groceries to rent to gas for their cars. Low-income consumers are especially hard-pressed to find deals.
“They had savings from the stimulus checks that have now been exhausted,” Richard Baum, managing partner at Consumer Growth Partners, told The Post. “They don’t have much discretionary income to spend and this year they have less than last year, even though inflation is starting to decline.”
In a telling sign of the prevailing mood Friday, “outlets are busier than full-price malls,” said retail consultant Gabriella Santaniello, who has a team of retail inspectors in key shopping centers across the country. country.
Shoppers spent a record $5.6 billion online on Thanksgiving, Adobe Analytics data showed, a 5.5% increase in online spending compared to last year, in line with projections .
Thanksgiving Day online discounts peaked at about 28% for toys, while electronics saw discounts of up to 27%, Adobe said.
Barbie dolls, Marvel action figures, the Playstation 5 and the video game “Call of Duty: Modern Warfare III” were the best sellers.
BestBuy expects its comparable-store sales to decline between 3% and 7% in the crucial fourth quarter, the company said on its earnings conference call last week.
“We’re preparing for a customer who is very business-focused,” BestBuy CEO Corie Barrie said on the call.
Walmart Chief Financial Officer John David Rainey said on a Nov. 16 earnings call: “As we enter the holiday season, we are working hard to reduce grocery prices to relieve pressure on customers. giving them more ability to spend on general merchandise.”
Among the main factors contributing to the gloomy outlook is rising consumer debt. Credit card balances have reached their highest level in 10 years and student loan payments have resumed after a pandemic pause.
It’s not just budget-conscious buyers who are worried about their finances.
Those who shop at luxury stores like Neiman Marcus are also holding back.
The Dallas-based retailer said this week that its sales declined 8% in the most recent quarter that ended Oct. 28.
“The consumer has become increasingly cautious and the luxury sector remains highly promotional,” CEO Geoffroy van Raemdonck said, according to a Dallas Morning News report.
As shoppers focus on grabbing bargains, some experts expect spending during the Black Friday and Cyber Monday promotional period to be strong.
Consumers plan to spend an average of $567 during the deepest discount period, up 13% from last year, according to a Deloitte survey.
But to stay within their spending limits, many consumers plan to do most of their holiday shopping early, and four in 10 expect to finish their shopping within the next week. according to the survey reported by Bloomberg.
