Black Friday Sales Boom Despite ElevatedPrices
Black Friday promotions kicked off across the United States, marking the official start of the holiday shopping season amidst a tough economic climate. Inflation, lingering from the aftermath of the COVID-19 pandemic, continues to weigh heavily on household budgets just as eager shoppers chase after deals both online and in brick-and-mortar stores.
Even before sunset on Thursday, shoppers flocked to malls and shopping centers, eager to get ahead of the expected Friday rush.
“[We have customers] seeking earlier access,” explained Junior Bolden, a worker at the Citadel open-air shopping center near Los Angeles, California. The shopping center opted to remain open all night to accommodate eager deal hunters.
“People think everyone is going to show up tomorrow, but obviously, that’s not the case!
It’s hectic tonight!” shared a Los Angeles couple named Jaiden and Maria who were eager to avoid the expected Black Friday crowds.
The National Retail Federation (NRF) holds a remarkably optimistic outlook for the weekend, projecting a record more than 183 million people to flock to stores. This represents a potential total holiday gain of between 2.5% and 3% compared to 2023, translating to a staggered yet significant increase.
Adobe Analytics anticipates a near 10% increase in online Black Friday purchases, suggesting record-breaking spending of $10.8 billion.
Black Friday traditionally marks the beginning of the holiday shopping season, and consumers have been making the most of the deals all across America.
President Joe Biden himself joined the shopping frenzy, making a stop at a bookstore on Nantucket Island, where he was spending days with his family.
Budget Challenges
Despite the deals and excitement, inflation looms large, impacting household purchasing power. Prices continue on a upward trajectory, leaving many financially strained.
Las Vegas resident Beatrice Judon, 75, sums up the situation succinctly:
“The situation is “difficult,” she says,
“we hope it will get better, we have to be patient,” she explains while navigating a bustling department store in Washington.
Headquarters
The dissatisfaction with persistent inflation is cited as one of the key contributors to Donald Trump’s win in the November 5th election, meaning it is unintelligible to millions across the country. Bryan Cornell, CEO of Target, recently shared in a conference call that was televised, “after inflation, consumers are letting us know their budgets are tight,” he shared with analysts recently. They are becoming increasingly discerning, waiting for the final moment, searching for best deals and stocking up whenever they find aዉ bargain.”
“Living in the United States is expensive,” lamented Tyler Austin, 25, who ventured out to purchase a few new items for his wardrobe.
Year’s Inflation Concerns, Rising Wages Drive Demand
Households grappling with lower incomes have been hit the hardest by this period of high inflation, though a glimmer of hope appears to be emerging.
“For the first time since 2021, when inflation started to rise, it looks like their real incomes are finally increasing,” Michael O’Sullivan, CEO of discount clothing retailer Burlington Stores, declared during a canvas. Some of the retailer’s strongest performances are occurring in stores located in lower-income areas
“Over the course of this year, what we saw was that as their real incomes stabilized
and started to recover, they started spending more,” .
online sales are off to a powerful start. Online sales this year are up 9.6% over the first 24 days of the holiday season, outpacing the projected 8.4% increase, according to Adobe Digital Insights.
This is likely fueled by increased competition among online retailers, leading to cheaper prices.
“Prices for all consumer goods continue exceeding 2%, but
Adobe estimates that prices of goods sold online have actually fallen by 2.9% year-over-year due to promotions and widespread online discounts,” with a research Vivicomag says.
How has inflation affected Black Friday shopping trends this year?
## Black Friday Sales Boom Despite Inflationary Concerns
**Host:** Welcome back to the show. Joining us today is economist Dr. Jane Smith to discuss the surprising surge in Black Friday sales, despite ongoing concerns about inflation. Dr. Smith, let’s start with the big picture. What are retailers seeing this Black Friday weekend?
**Dr. Smith:** Well, it seems the reports are confirming what we saw on the ground – a massive turnout for Black Friday deals. The National Retail Federation is projecting record crowds – over 183 million people! That, coupled with Adobe Analytics predicting a near 10% jump in online sales, points to a very successful weekend for many businesses. [[1](https://www.nytimes.com/2023/11/27/business/dealbook/black-friday-economy-inflation.html)]
**Host:** This is certainly good news for retailers, but many Americans are struggling with rising prices. How are shoppers navigating these competing pressures?
**Dr. Smith:** It’s a delicate balance. While people are clearly taking advantage of discounts and promotions, they’re also being more selective about their spending. The “recessionary mindset” is still very much present. While we see crowds, anecdotal accounts from shoppers and retailers like those at the Citadel shopping centre in Los Angeles highlight a sense of urgency to find the best deals and avoid overspending. [[1](https://www.nytimes.com/2023/11/27/business/dealbook/black-friday-economy-inflation.html)]The fact that President Biden himself was spotted shopping on Nantucket reinforces this point.
**Host:** But with inflation still a major concern, do you foresee this spending trend continuing throughout the holiday season?
**Dr. Smith:** That’s a complex question. While shoppers are clearly eager for deals, the long-term outlook depends on factors like consumer confidence and whether inflation begins to ease. For now, the Black Friday numbers offer a glimmer of hope for the retail industry, but it’s too early to say if this momentum will be sustained throughout the holiday season.
