Experts anticipate that Black Friday sales will suffer this year due to the fact that Americans are currently experiencing inflation after two years of a global epidemic.
Due to stimulus checks, money saved from the pandemic, and pent-up energy from the lockdown, 2021’s Black Friday saw an increase. However, 2022 might be very different. According to the consumer mood index from the University of Michigan, consumer confidence is at its lowest point in a decade as a result of Americans’ concerns over inflation and another recession.
While retail sales are growing in dollars when the numbers are adjusted for inflation, “it looks like spending and retail sales are starting to level,” James Bohnaker, a senior economist at Cushman & Wakefield, told the Commerical Observer.
According to Blackentreprise, Bohnaker noted two factors that could level the Black Friday playing field. One is high-income households having enough money to “play around” this holiday season. The other is lower- and middle-income households resorting to credit cards and buy-now-pay-later options to finance their purchases.
“WE THINK THIS HOLIDAY SEASON IS GOING TO BE OK,” BOHNAKER SAID. “NOT THE STRENGTH WE SAW LAST YEAR, BUT NOT ANY SIGNIFICANT DECLINE.”
According to The Guardian, technology sales are also anticipated to decline because families bought big televisions, computers, and other digital devices while under lockdown during the pandemic. Over the two-week Black Friday period, which runs from November 22 to December 5, consumers in the UK spent $22.62 billion.
However, data by GlobalData for Vouchercodes shows that when inflation is taken into account, customers are actually shopping less than they were the year before. Foot traffic is assisting major shops like Target, Walmart, and Costco in performing well even while prices at grocers and food stores climb.
“TRAFFIC IS NOT UP IN MALLS VERSUS 2019,” RETAIL CONSULTANT KATE NEWLIN SAID.
“Brick-and-mortar shopping, like commuting, is vastly overrated once you develop a workaround. We had two years to figure out how Amazon works, and retailers had two years to figure out how to do what Amazon does but for their brand.”
With the demand down, retailers might produce bigger deals to increase sales. That means consumers should stay on the lookout to get their hands on some well-priced products this holiday season.