Retailers are gearing up for a “big weekend” of shopping this Black Friday and Small Business Saturday, as in-person sales surge back after a 2020 season hobbled by COVID-19.
The annual Black Friday extravaganza appears headed toward strong sales, despite pressures from inflation and shipping constraints, retail experts tell the Herald.
There is plenty of consumer momentum and “pent-up demand” after in-person shopping dropped last year when no one was vaccinated and many were concerned about heading out to stores and crowds.
“People have saved some money and want to get out and shop,” said Jon Hurst, president of the Retailers Association of Massachusetts. “That’s good for the brick and mortar stores.
“It will be a big weekend,” Hurst added. “Friday will be big, and so will Small Business Saturday. … Consumers do have some pent-up demand as a result of the economic crisis and health crisis.”
An average holiday season increase year-over-year is around 4%, and retailers are looking to crush that this year, he said.
“Our members have been through a tough time, but they’re optimistic,” Hurst said. “We’re expecting a good season.”
The National Retail Federation is forecasting that holiday sales during November and December will grow between 8.5% and 10.5% over 2020 numbers — to between $843.4 billion and $859 billion, which would set records for both the growth rate and total amount spent. Consumers are expected to spend an average of $997.73.
Nearly 2 million more people than last year are forecasted to shop from Thanksgiving Day through Cyber Monday, according to a survey released by the National Retail Federation and Prosper Insights & Analytics.
“We’re expecting another record-breaking holiday season this year and Thanksgiving weekend will play a major role as it always has,” said National Retail Federation President and CEO Matthew Shay. “Nonetheless, consumers are starting earlier than ever to be sure they can get what they want, when they want it, at a price they want to pay.”
Many shoppers have started earlier this year because they’re concerned about the supply-chain issues, Hurst said. Stores as a result began launching their promotions early.
Inflation is also a dilemma for stores. They have to decide whether they pass higher costs on to consumers, or if they’ll eat some of those costs to stay competitive, Hurst said.
“There’s a balance that must be struck,” he said.
The average selling price is up so far this holiday season compared to last year, with prices rising 12%, according to Salesforce.
But retailers are expecting a very good holiday season despite inflation, Hurst said, noting that many people have saved a lot in the last 20 months.
Two-thirds of holiday shoppers plan to shop Thanksgiving weekend, which amounts to an estimated 158.3 million people, according to the National Retail Federation survey.
About 30.6 million people reportedly plan to shop either in-store or online on Thanksgiving Day, 108 million on Black Friday, 58.1 million on Small Business Saturday, 31.2 million on Sunday, and 62.8 million on Cyber Monday.
Among those shopping on Thanksgiving Day, 65% are likely to do so in stores, up from 50% last year. On Black Friday, 64% are likely to shop in stores, up from 51% last year.
For those shopping during the weekend, deals that are “too good to pass up” remain the top reason, cited by 58%, but tradition continued to come in second at 28%.
The overall average discount for Black Friday is 32%, according to WalletHub. The personal finance website said shoppers should aim for this discount amount or higher to avoid Black Friday traps.
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Business News Click Here
