Black Friday Deals Target Inflation-Weary US Consumers
NEW YORK, United States — The annual Black Friday shopping day has always been about finding the best deals, but this year retailers are preparing for US consumers who are more zealously fixated than ever on getting value for their money.
Although inflation has stabilized after dramatic price spikes during the Covid pandemic, consumers are still feeling the pinch. As a result, bargain-hunting strategies such as grabbing early giveaways and waiting for last-minute steals are trending.
In an analysis of holiday shoppers in 2024, experts noted that consumers are “even more preoccupied and very focused around value and discounts.” This heightened price sensitivity means shoppers are more responsive to deals and event-based promotions.
Throughout 2024, consumers have been active in responding to special discount occasions such as Memorial Day and Amazon’s “Prime Day.”
Black Friday marks the unofficial start of the US holiday gift season, occurring the day after Thanksgiving. It kicks off a month filled with commerce-oriented events, including “Small Business Saturday” and “Cyber Monday.”
In recent years, growing inflation concerns have led major retailers like Target to advance their “Black Friday” promotions to October or even earlier. This change signals a shift in shopping behavior as retailers adapt to market dynamics.
According to research, consumer prices were, on average, 22 percent higher in August 2024 compared to January 2020. Popular discontent surrounding inflation played a significant role in political outcomes, further highlighting the importance of consumer sentiment.
Retailers are heavily influenced by the economic environment when making discounting decisions. At Target, shoppers have become accustomed to turning out in force for the chain’s “Circle Week” savings events, which occur quarterly. This trend affects buying behavior, resulting in diminished sales the week before and after events.
Target CEO Brian Cornell observed, “Consumers tell us their budgets remain stretched. They’re becoming increasingly resourceful in their shopping behaviors, waiting to buy until the last moment, focusing on deals, and then stocking up when they find them.”
The National Retail Federation has projected holiday spending growth between 2.5 and 3.5 percent for the 2024 season compared with the previous year, potentially reaching up to $989 billion in just two months. An easing of gasoline prices and declining costs of certain food items are contributing factors to this forecast.
While the inflationary landscape has placed significant stress on low-income households, there are signs of improvement. Retail chains like Burlington Stores are reporting strong sales in low-income neighborhoods, indicating that real incomes for these consumers may finally be edging upward.
Thanksgiving, always observed on the fourth Thursday of November, falls on its latest possible date in 2024, prompting retailers to adjust to a season with five fewer shopping days than last year. In preparation, Best Buy has launched its Black Friday sale a week ahead of Thanksgiving.
Best Buy is also reviving “Doorbuster” sales, which will take place every Friday this year, both in stores and online. Many retailers phased out these events due to safety concerns related to large crowds, but they are making a comeback during this vital shopping season.
Recent data from Adobe Digital Insights indicates that online sales during the first 24 days of the holiday season have increased by 9.6 percent compared to the previous year, surpassing the projected growth of 8.4 percent for the entire season. This trend may be attributed to the shortened shopping season and the competitive prices that come with high demand for online goods.
As retailers adapt to the changing landscape, Black Friday remains a crucial opportunity for consumers looking for deals amidst the challenges posed by inflation. The focus on value and discounts is likely to continue shaping the shopping habits of Americans this holiday season.
