Black Friday Sales Will Reveal State of US Economy
A big question about this year's Black Friday remains: will sales surpass last year as consumers search for deals or will sales plummet amid red hot inflation? "Industry groups are predicting another record year of retail sales, with the National Retail Federation forecasting a jump of 6% to 8% over the $890 billion consumers spent online and in stores in November and December of 2021," reads an article from The Conversation.
Still, there is speculation that due to inflation, consumers will be reluctant to spend. According to a survey from Michigan State University, 80% of respondents said they are either moderately, very or extremely concerned about the surge in prices, and 87% said those concerns would affect their holiday spending behavior, like buying fewer gifts or buying less expensive items.
Retailers are planning to apply greater discounts than usual in an attempt to get more sales. "I think consumers are going to go out there and be pleasantly surprised by what they see in terms of the number of sales and the discounts," Mark Matthews, National Retail Federation's vice president for research development and industry analysis, told the Washington Examiner. "Last year, about one-third of consumers said that they're finding what they're looking for in stores, and that has doubled to about two-thirds now."
This drastic change is due to the "widespread current speculation that a recession is imminent, which means even more attention than usual will be paid to what the Thanksgiving sales indicate," reads an article by MarketWatch.