Black Friday Unveiled: As Black Friday looms, retailers globally are gearing up for what they hope will be another record-setting shopping frenzy. This article explores what to anticipate from Black Friday 2023, delving into the origins of its name, expectations for deals, hot items, potential crowd levels, and retailers’ strategies in the face of evolving consumer behavior.
Dating back to the 1960s and 1970s, Philadelphia police and bus drivers initially coined the term “Black Friday” to describe the chaos accompanying the influx of people before the Thanksgiving weekend. Originally associated with shoplifting and parking violations, department stores attempted to rebrand it as “Big Friday.” However, the name stuck, evolving into a positive connotation as retailers claimed their ledgers were “in the black” due to increased profits as holiday shopping kicked off.
Major retailers, from Dollar General to Walmart and Macy’s, may find themselves with excess stock for the second consecutive year. This situation could lead to significant discounts to entice shoppers. Early indicators already show discounts as high as 60% at Kohl’s and Macy’s, with online discounts expected to be substantial, especially in categories like electronics, toys, and furniture.
The recent launch of iPhone 15 positions iPhones as hot items for Black Friday. Electronics, in general, are expected to dominate, with estimates suggesting a 6% growth in this category. Retailers like Best Buy have already initiated Black Friday deals, offering bundled packages to attract early shoppers. Beyond gadgets, skin and hair care products, including brands like Ulta Beauty, are also expected to draw attention with significant discounts.
Around 130.7 million people are anticipated to participate in Black Friday shopping this year, making it a crucial period for retailers. However, industry experts suggest that the significance of Black Friday itself might diminish in 2023 due to the procrastination factor. With Christmas falling on a Monday, shoppers may delay purchases until the weekend before Christmas.
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Retailers are already rolling out early Black Friday deals, both online and in stores, to gauge demand and prevent product shortages. However, challenges such as labor shortages, supply chain disruptions, and potential disruptions from protests or strikes add complexity to their plans. Retailers like Kohl’s are advertising online discounts starting at 12:01 a.m. on Thanksgiving.
Cyber Week, spanning from Thanksgiving to Cyber Monday, is expected to generate $37.2 billion in online spending, significantly less than China’s Singles Day event. Overall, holiday retail sales are projected to increase by 3-4% YoY, with Black Friday online spending anticipated to rise by 5.7% to around $9.6 billion. In the UK, online spending during Black Friday is expected to increase by 4.5% to 1.05 billion pounds.
With economic pressures on households, including the return of student loan payments and rising essential costs, retailers are relying on promotions and early offers to attract consumers. The competitive landscape has shifted, with retailers vying for attention through early Black Friday deals.
As retailers navigate challenges and changing consumer dynamics, Black Friday remains a critical juncture for the industry. The evolving significance of this shopping day, coupled with the uncertainties of the current retail landscape, adds an extra layer of complexity to the strategies employed by retailers aiming to make the most of this crucial shopping period.
Our Reader’s Queries
When did Black Friday originally begin?
The term “Black Friday” was first used in the journal Factory Management and Maintenance in November 1951, and again in 1952. It was used to describe the phenomenon of workers calling in sick on the day after Thanksgiving to enjoy a four-day weekend. This practice has since become synonymous with the biggest shopping day of the year.
Is Black Friday not a thing anymore?
According to Craig Johnson, founder of Customer Growth Partners, Black Friday is no longer the cultural phenomenon it once was. The rise of online shopping has significantly reduced the crowds that used to flock to stores on this day. However, there are still some consumers who prefer the traditional in-person shopping experience.
What is the psychology behind Black Friday?
Black Friday has a unique appeal and repulsion. Research shows that time-limited deals can trigger a sense of urgency that overrides logical thinking. Additionally, the fear of missing out (FOMO) plays on our natural aversion to loss, as explained by Behavioral Economics.
Is Black Friday a national holiday in the United States?
The rise of online shopping and extended discount periods has eliminated the need for rushing to the mall. However, Black Friday sales remain a significant revenue driver for retailers, even though it is not a federal holiday. Despite this, many federal and private sector workers still take the day off to take advantage of the deals.