Black Friday 2023: Are shoppers buying into the deals?
As the holiday season kicks off, eager deal-hunters flocked to their favorite stores on Black Friday in search of early bargains. The day following Thanksgiving typically marks the start of the year-end gift-buying frenzy, but this year may be different.
Retail industry experts are observing a sense of caution among shoppers, with many holding out for deeper discounts. Michael Brown, a partner at management consulting firm Kearney, noted that the early start to holiday sales this year, which began as early as October, could be contributing to consumer fatigue.
Despite steady foot traffic in stores, Black Friday discounts were averaging in the 25% to 30% range, prompting shoppers to wait for better deals. Marshal Cohen, chief retail industry analyst at Circa, remarked that consumers are not showing a sense of urgency and are looking for better discounts.
One item that is flying off the shelves is video game consoles, with toys, jewelry, and clothing also selling quickly – particularly online. Thanksgiving Day online sales hit a record $5.6 billion, up 5.5% from the previous year. Disney Little People, Uno, and superhero action figures are among the most sought-after toy purchases.
Retailers are hoping to entice shoppers with attractive deals, with the November-December gift-buying period critical for their sales. However, consumer spending may be impacted by various economic pressures, including rising prices and re-started student loan repayments.
Nevertheless, mall operators such as Brookfield Properties and Simon Property Group noted a strong turnout on Black Friday. Brian Schroeder, senior general manager at The Shops at La Cantera, reported a better-than-expected traffic at the mall, with popular stores offering attractive discounts.
Meanwhile, JCPenney CEO Marc Rosen emphasized the importance of offering value to their core customers, who are facing inflation headwinds. The retailer is focusing on value-priced items and special credit promotions to provide relief to its customers.
As the holiday shopping season unfolds, the dynamics of consumer behavior and retail strategies may continue to evolve in response to economic challenges and changing consumer preferences.
Contributing: CNN’s Nathaniel Meyersohn