Retailers in the U.S. are gearing up for Black Friday, the day after Thanksgiving, which kicks off the holiday shopping season that typically accounts for a third of U.S. retailers’ annual profits.
WHY IS IT CALLED ‘BLACK’ FRIDAY?
In the early 1960s, police officers in Philadelphia described the chaos that resulted from a large number of suburban tourists coming into the city to begin their holiday shopping as “Black Friday.”
The phrase did not describe a positive boost in retail sales until the late 1980s, when merchants spread the narrative of being “in the red” until the day after Thanksgiving, when massive sales allowed them to turn a profit, or put them “in the black.”
HOW MUCH ARE SHOPPERS EXPECTED TO SPEND?
The National Retail Federation (NRF) expects 186.9 million Americans to shop in the five days between Thanksgiving and Cyber Monday, which would be a record, surpassing last year’s 183.4 million.
Sales for November and December together are expected to surpass $1 trillion for the first time, but sales growth is expected to slow to a range of 3.7% to 4.2%, lower than last year’s 4.8% increase.
Consumers plan to spend $890.49 per person on average, NRF said.
The slower sales growth mirrors the sentiment from muted holiday shopping forecasts from other major data firms.
Persistent inflation and lingering trade policy effects have pushed consumers to avoid splurges and hunt for bargains as several retailers, including Tapestry (TPR.N), opens new tab, Bath & Body Works (BBWI.N), opens new tab and Deckers (DECK.N), opens new tab, have recently issued cautious holiday forecasts.
Adobe Analytics said in October discounts on online retail platforms would likely reach up to 28%, similar to last year, although shoppers will trade up to higher-value items with the best discounts.
