Even though Black Friday is over a week away, retailers are already enticing us with discounted prices, urging early purchases. Despite the upcoming date of Black Friday, they are eager to entice customers with tempting offers and early savings.
The informal term “Black Friday” refers to the Friday after Thanksgiving in the United States. Traditionally, it signals the start of the Christmas shopping season. Many stores offer highly promoted sales at discounted prices and open early, sometimes even at midnight or on Thanksgiving. This festive kickoff draws eager shoppers seeking bargains. Additionally, some stores extend their sales to Monday (known as “Cyber Monday”) or for a week (“Cyber Week”).
Historically, Black Friday has consistently been the busiest shopping day of the year in the United States.
Black Thursday
For years, retailers pushed Black Friday opening times earlier, reaching midnight. On Thanksgiving in 2009, Kmart manager Freddy Moss opened the store at 7 p.m., aiding shoppers in avoiding Black Friday traffic. Two years later, many retailers started opening at 8 p.m. or 9 p.m., leading to “Black Thursday.” Over the years, more stores followed, opening earlier on Thanksgiving or staying open all day, often starting early in the morning. Some refer to this trend as “Gray Thursday” or “Brown Thursday.”
In 2014, “Black Thursday” sales dropped significantly, falling 11% from the previous year despite high Thanksgiving night in-store traffic. Responding to this decline, several retailers returned to closing on Thanksgiving in 2015. Walmart committed to maintaining its holiday opening and sale while also offering the same discounts online for those who preferred to stay home. This adjustment aimed to cater to diverse customer preferences.
Black Friday’s Global Celebration
While some states, like California, observe “The Day After Thanksgiving” as a holiday, the United States doesn’t officially recognize Black Friday. Even though many people celebrate it, it’s not officially recognized. This difference affects how the day is seen and treated everywhere. Occasionally, people mark it in place of another official holiday, such as Columbus Day. For many non-retail workers and schools, both Thanksgiving and the following Friday are holidays. The SouthPark neighborhood in Charlotte, North Carolina, takes the lead in the country for traffic on Black Friday.
There are several reasons why Black Friday is a crucial shopping day. Aligned with the last major holiday before Christmas, it officially starts the holiday shopping season. Given the Thanksgiving break, when many companies grant a day off, it becomes an ideal time for shopping. Nationwide, both major and small stores entice customers with various bargains, including time-limited “doorbuster” items.
The areas around Lake Ontario and the Lower Mainland in Canada have consistently drawn cross-border shopping into the United States. As Black Friday gained popularity in the U.S., Canadians often crossed the border. This was because of lower prices and a stronger Canadian dollar.
Why Retailers Begin Early Sales Before the Big Shopping Day
As Thanksgiving approaches, our inbox is flooded with tempting offers. They’re coming in so fast that I can’t help but think, “Hey, Thanksgiving isn’t even here yet!”
Madewell starts its “Black Friday Event” with an attractive 40% off on order. Meanwhile, Jennie Kayne proudly announces a 25% site-wide discount as part of their early “Black Friday Event.”
Moving on to Friday, Nov. 17, that’s when Best Buy eagerly begins its Black Friday celebration. At the same time, Target keeps reminding me about the benefits of early shopping with ongoing Black Friday deals. On the flip side, Walmart adopts a measured approach. They advise waiting until Wednesday, Nov. 22, to access online Black Friday discounts.
To sum up, concerns are emerging. US Bank notes that despite inflation and increasing interest rates, consumer spending played a crucial role in this year’s economy. Yet, analysts observe signs of a slowdown as the anticipated robust holiday season approaches. The Commerce Department revealed a 0.1% drop in U.S. retail sales in October, marking the first decline since March. This trend is repeated in Target’s recent earnings call. Lower sales were attributed to consumers reducing discretionary spending, marking the first quarterly sales decline in six years. This decline raises concerns about consumer habits amid changing economic conditions.
Stores worry about Black Friday
Preparing for a challenging holiday season, retailers are a bit nervous, according to Neil Saunders, managing director of GlobalData. They want to attract early shoppers, fearing customers might go elsewhere if they wait too long.
Despite the potential impact on a company’s bottom line, merchants can afford large discounts due to reduced freight costs. In the era of inflation, offering unique value is crucial for outperforming competitors. “Consumers are cautious, and the key is nudging them to spend,” emphasizes Saunders.
Independent retail expert Brittain Ladd notes that early discounts aim to encourage multiple holiday purchases. Notably, most stores focus on specific products, preventing you from completing all your holiday shopping now and waiting for sales. By enticing customers with immediate and future deals, retailers hope to boost spending in the upcoming months. Ladd underscores that retailers are eager to go above and beyond to promote customer purchases.
Expect a 70% Surge in Online Sales in India This Black Friday
As the biggest sale of the year approaches in a few short weeks, brands and markets gear up for the peak of 2023. Admitad Partner Network, after analyzing last year’s Black Friday online sales, predicts a 70% increase in online sales in India. They’ve also identified product categories Indians are likely to demand and suggested new markets for businesses to explore.
To project popular categories and efficient traffic paths, the Admitad partner network examined over 148 million global online orders and more than 13.4 million online orders in India alone.
Moving into the recent past, global Black Friday sales in 2022 set new records. Experts noted a substantial increase in global orders, ranging from 2% to 15% compared to 2021. The noteworthy aspect is that this growth occurred despite the current economic challenges and rising inflation, which is undoubtedly a positive indicator for businesses.
