Black Friday, which begins immediately after Thanksgiving in the US, is re-emerging as the most critical shopping period of the year for retailers. Spending during the holiday season accounts for approximately one-third of the annual profits of retailers in the country.
Where Does the Name Black Friday Come From?
In the early 1960s, Philadelphia police defined the chaos created by shoppers flocking to the city after Thanksgiving as “Black Friday”.
The term only gained a positive connotation in the late 1980s when retailers described the period when their loss-making accounting records turned profitable as “going from red to black.” How Much Will Be Spent? The National Retail Federation (NRF) predicts that 186.9 million Americans will shop in the five days between Thanksgiving and Cyber Monday. This figure could surpass last year’s record of 183.4 million. Total sales for November–December are expected to exceed $1 trillion for the first time, but the growth rate will fall from last year’s 4.8% to a range of 3.7–4.2%. Consumers are reportedly planning to spend an average of $890.49 per person.Due to the effects of high inflation and trade policies, many consumers are avoiding large expenditures and turning to opportunity hunting. Tapestry, Bath & Brands like Body Works and Deckers have also released cautious holiday season forecasts.
Early Campaigns Collect Sales in Advance
Retailers, staying true to tradition, started their discounts early.
- Walmart is giving Walmart+ members early access to its campaigns, which started on November 14 and will continue in three phases until December 1.
- Amazon entered Black Friday week on November 20th.
- Macy’s opened its “early access” portal on November 10th.
- Kohl’s started its discounts on November 7th.
- Target announced its online deals starting November 23rd.
What’s in Your Shopping Cart?
This year’s most prominent discounts are concentrated on electronics and personal care products:
- At Walmart, the 85-inch TCL Roku TV is down from $678 to $498. The Blackstone outdoor grille has dropped from $225 to $157. Best Buy is offering a 65-inch Samsung TV for $1,000 at a 50% discount. Lenovo Yoga and HP laptop models are also on the list with big discounts.
- Brands like Ultra Beauty, Sol de Janeiro, Olaplex, Tarte, MAC, and Estée Lauder are offering extensive discounts.
- Apple is offering gift cards up to $250 as part of its “Cyber Weekend,” while Amazon is offering Black Friday discounts starting at 21% on MacBook Air models.
This year, consumers are again most interested in high-value electronics, personal care brands, and large electronics.
People are turning to products with price reductions.
