Navigating Black Friday 2023: As the fourth Friday of November approaches, retailers worldwide are preparing for what they hope will be yet another record-setting global spree on Black Friday, falling on November 24 this year. Known for its crowds and doorbuster discounts, Black Friday traditionally marks the unofficial start of the Christmas shopping season. Let’s delve into what to expect from this year’s Black Friday and explore the strategies and challenges that retailers are facing.
The term ‘Black Friday’ originated in the 1960s and early 1970s in Philadelphia when police and bus drivers used it to describe the chaos caused by an influx of people before the Thanksgiving weekend. Over time, retailers rebranded it to put a positive spin on the day, linking it to their ledgers being “in the black,” indicating profitability as holiday shopping commenced.
Major retailers such as Best Buy, Macy’s, H&M, Shein, and Temu are already promoting early Black Friday deals, offering discounts of up to 30% on limited merchandise both online and in stores. These early promotions serve not only to attract early shoppers but also to gauge demand and prevent potential product shortages, a concern heightened by challenges in shipping due to low water levels in the Panama Canal.
While Thanksgiving weekend, encompassing Black Friday and Cyber Monday, typically marks the busiest shopping period in the United States, expectations for Black Friday itself are shifting this year. Dana Telsey, CEO of Telsey Advisory Group, notes that with Christmas falling on a Monday, the procrastination factor is greater, allowing shoppers to wait until the weekend before Christmas to make purchases.
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In-store traffic is predicted to drop slightly this year compared to the previous one, with retailers emphasizing online ordering and curbside pick-up options. Over the past decade, online Black Friday purchases have more than tripled, reaching $9.12 billion on the day last year, according to data from Adobe Analytics.
Several major retailers, including Dollar General, Walmart, and Macy’s, may face challenges with excess stock for the second consecutive year, potentially leading to significant discounts to attract shoppers. Research firm Jane Hali & Associates reported high discounts at retailers like Kohl’s and Macy’s, with foot traffic lower than last year. Online discounts are expected to be steep, ranging from 19% on furniture to 35% on toys, according to Adobe.
Holiday sales, both online and in U.S. stores, are projected to rise between 3% and 4% during November and December, marking the slowest pace in five years. Spending online during Black Friday is anticipated to increase by 5.7% to approximately $9.6 billion, according to Adobe Analytics. In the United Kingdom, online spending during Black Friday is expected to rise by 4.5% to £1.05 billion.
Fintech firm Finder estimates that around 132 million Americans plan to participate in pre-holiday sales like Black Friday and Cyber Monday in 2023, down from approximately 140 million shoppers last year. This slight decline could be attributed to factors such as economic uncertainties, the return of student loan payments, and rising costs of housing and essentials.
With various financial challenges facing consumers, retailers are expected to heavily rely on promotions and early offers to stay competitive this holiday season. Deloitte’s data suggests that consumers are looking to complete their shopping in just 5.8 weeks this year, compared to a pre-pandemic window of 7.4 weeks, highlighting the urgency in attracting shoppers.
Popular items for Black Friday this year are expected to include the latest iPhones, particularly the recently launched iPhone 15. Electronics are predicted to be the top pick, with an estimated 6% growth, according to a report by Mastercard. Retailers like Best Buy have already initiated Black Friday deals, offering bundled products at discounted prices.
Skin and hair care products are also expected to remain popular, with Ulta Beauty offering substantial discounts on various beauty products. Retailers are strategically promoting deals to capture the attention of shoppers seeking both practical and luxury items.
Macy’s CEO Jeff Gennette suggests that the competitive landscape has shifted to Black Friday deals before the actual day. With Christmas falling on a Monday, shoppers have the flexibility to wait until the weekend before Christmas to make their purchases. Despite various challenges, Mattel President Steve Totzke anticipates a strong Black Friday and run-up to the holidays.
In conclusion, Black Friday 2023 is poised to be a dynamic and crucial period for retailers, with shifts in consumer behavior, potential supply chain challenges, and increased reliance on online channels. As the global shopping spree unfolds, retailers will navigate these complexities to make the most of this key shopping event.
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Maximize Your Black Friday Shopping with Expert Tips
Prepare for the big day by creating a game plan in advance. Don’t just focus on sale prices, as there are other ways to save money. Avoid the crowds and shop online instead. Treat Black Friday as the first round of shopping, but don’t wait too long to make your purchases. Stay up-to-date on upcoming sales and shop wisely to avoid any unnecessary purchases. With these expert tips, you’ll be able to make the most of your Black Friday shopping experience.
How much money will be spent on Black Friday 2023?
Retailers responded to consumer hesitation by launching their holiday shopping deals earlier than usual. Many major companies offered their deals over a month ahead of Black Friday. As a result, consumers spent a whopping $9.8 billion online on Black Friday, setting a new record, as per data from Adobe Analytics.
Do you actually save money on Black Friday?
Yes, products are indeed discounted during Black Friday sales. In fact, according to Adobe Analytics data, this holiday season will see record high discounts of up to 35% off the list price. The best deals are expected to be available from Thanksgiving through Cyber Monday.
Are Cyber Monday deals better than Black Friday?
It’s worth noting that Cyber Monday deals often match those of Black Friday. The best part? November is typically the prime month for snagging great deals on just about anything worth purchasing. Whether you’re shopping on Black Friday or Cyber Monday, you can rest assured that you’ll be able to save big on your purchases.