After Thanksgiving, “Black Friday” leading into “Cyber Monday” marks one of the busiest shopping seasons of the year. Merchants often take advantage of this period to launch their most attractive sales events to lure consumers to make purchases.
According to the annual survey released by the National Retail Federation (NRF) on November 14, a record-breaking 183.4 million people are planning to shop in-store and online from Thanksgiving to Cyber Monday. This number surpasses the previous record of 182 million people in 2023 and is 18.1 million more than pre-pandemic year 2019.
Katherine Cullen, Vice President of Industry and Consumer Insights at NRF, stated that the five-day Thanksgiving weekend is one of the busiest shopping days of the year. Consumers are prioritizing gifts for their loved ones, and retailers are prepared to assist customers in finding everything on their shopping lists at discounted prices throughout the shopping season.
The latest consumer survey conducted by NRF also indicates that the average winter holiday spending per person is expected to reach a record high of $902. These expenditures will be on gifts, food, decorations, and other seasonal items, representing a $25 increase from last year and a $16 increase from the previous record set in 2019.
Consumers’ main reasons for shopping during these five days include not wanting to miss out on great deals (57%), traditional shopping (28%), and the enjoyment of starting holiday shopping early during the Thanksgiving weekend (24%).
Although consumers will shop through various channels during the entire five-day Thanksgiving weekend holiday, NRF’s survey reveals that Black Friday remains the most popular shopping day, with 72% of consumers (131.7 million people) planning to shop in stores or online on that day. Cyber Monday is the second most popular shopping day, attracting 39% (72.3 million people) of planned shoppers.
However, it’s important to note that not all items purchased on Black Friday offer significant savings.
According to WalletHub’s report on the “Best Items to Buy on Black Friday in 2023,” 35% of major retailers’ products do not have substantial discounts compared to pre-Black Friday prices. The website compared Black Friday advertisements with prices from early autumn on Amazon in 2023.
Andrea Woroch, a consumer savings expert as reported by CNBC, mentioned that some Black Friday promotions can be misleading, as retailers may inflate original prices to make the discounts appear more appealing.
Thanksgiving falls on different dates each year. Last year, it was on November 23, while this year it falls on November 28. Adam Davis, Managing Director of Retail Finance at Wells Fargo, pointed out that the shopping season between Thanksgiving and Christmas is nearly a week shorter this year compared to last, highlighting the importance of extending the holiday sales season. Retailers are expected to heavily promote sales in November to maximize promotion days.
Davis mentioned that discounts of 20% to 30% can be seen, but they may not apply to the entire store. Depending on the retailer, discounts could reach up to 50%, while high-end brands like Nike, Alo, or Lululemon may have discounts not exceeding 20% to 30%.
Consumer sensitivity to prices is noted by companies like these who understand that holidays are not only about indulging but also about getting more value for their money.
Holidays are the time people want to treat themselves, but they also want to make their money last longer, as stated by Beitelspacher.
Retailers will implement strategies such as offering gift cards for minimum purchases to incentivize shoppers. Many stores also provide rewards when customers reach a certain spending threshold on Black Friday.
Typically, Black Friday is a good time to find the lowest prices on fall clothing, TVs, and consumer electronics.
Amazon’s Black Friday deals are set to start a few days earlier, from November 21 to November 29, with discounts up to 55% on products such as Amazon Fire TV, Kindle, Ring doorbells, and Beats headphones.
However, beauty products and footwear may see better deals on “Cyber Monday.”
For travelers, “Travel Tuesday,” which falls on the first Tuesday after Thanksgiving, is a great time to get discounts on plane tickets, cruises, and travel packages, with many hotels offering 20% to 30% off. You can check out Travel Tuesday deals starting in 2023 for reference.
According to Woroch, holiday decorations are usually cheaper to buy in the days leading up to or after Christmas.
She mentioned that during the “White Sales” in January, discounts on fitness equipment and bedding tend to be greater, while furniture and mattresses are usually priced better during other holiday weekends throughout the year like Presidents’ Day, Memorial Day, and Labor Day.
Consumers are increasingly concerned that their online purchases may not arrive on time during the holiday season.
Patrick Kelleher, the new CEO of DHL Supply Chain in North America, recently told CNBC that delivery times for this year’s goods may be delayed compared to previous years, especially for items ordered around critical dates like Black Friday and Cyber Monday.
Although Amazon announced hiring an additional 250,000 employees for the holiday season, matching last year’s seasonal hiring levels, Kelleher pointed out a significant change this year as retailers have adjusted their e-commerce delivery methods before and after major shopping days like Black Friday and Cyber Monday. Previously, shipments were typically fulfilled on the same day or the next day after consumer purchases, but now they may take a few days for processing to reduce the required workforce.
This adjustment may result in packages arriving a day or two later than in previous years, but Kelleher assured that in most cases, consumers won’t perceive it as a delay because carriers will clearly communicate the expected delivery time based on this new approach.
naturally, when there’s an increased volume of packages to transport, delivery times can be extended.