2024 ‘Black Friday’ sale targets inflation-hit US consumers – Times of India

As November ends, Black Friday begins. American holiday shopping seasona time known for finding the best deals. This year, however, retailers are preparing for shoppers who are more focused than ever on finding the best deals and maximizing their money’s worth.
Although inflation has stabilized after substantial price hikes during the Covid pandemic, consumers are still feeling financial pressure. As a result, bargain-hunting tactics like getting early gifts and waiting for last-minute steals have become a trend.
Vivek Pandya, lead insight analyst at Adobe Digital Insights, told AFP that compared to previous years, 2024 holiday shoppers are “even more engaged and much more focused on value and discount.”
“We see strong price sensitivity from consumers and they are very responsive to deals and event-tie deals,” he said.
This year, consumers eagerly took part in special discount events like Memorial Day sales and Amazon’s “Prime Day.”
Black Friday, marking the start of the gift-giving season, comes the day after Thanksgiving and kicks off a busy shopping weekend that also includes “Small Business Week” and “Cyber ​​Monday.”
To deal with rising inflation concerns, major retailers like Target have moved their “Black Friday” promotions to October or even earlier.
According to Pew Research, average consumer prices were 22 percent higher in August 2024 than in January 2020, and public dissatisfaction with inflation is one reason why Donald Trump won the US presidency in November.
According to Pew Research, in August 2024, prices rose an average of 22 percent compared to January 2020. Inflation is also believed to have played a role in Donald Trump’s victory in the November election.
Inflation continues to affect retailers’ discounting strategies as they aim to meet market demands.
At Target, shoppers have grown accustomed to flocking to the chain’s “Circle Week” savings events, held roughly once every quarter. According to executives, these events have resulted in a drop in purchases in the week before and after the events.
Target CEO Brian Cornell told analysts that after a long period of inflation, “consumers are telling us that their budgets have increased.”
“They are becoming increasingly resourceful in their shopping behavior, waiting to buy until the last minute of need, focusing on deals and then stocking up when they find them,” he said. He said.
For the 2024 season, the National Retail Federation predicts a 2.5 to 3.5 percent increase in holiday spending over last year, reaching $989 billion over the two-month period.
Economists have pointed to lower prices of certain food items as well as softening petrol prices as a contributing factor.
Economists also signaled a decline in the prices of some food items, supported by softening petrol prices.
The inflationary environment has particularly weighed on low-income households, with banks citing rising charge-off rates as a sign of mounting financial pressures.
However, some chains, such as off-price apparel retailer Burlington Stores, have seen improvements for this group of customers. According to Burlington CEO Michael O’Sullivan, some of the company’s strongest sales have come from stores located in low-income zip codes.
“Maybe for the first time since 2021 it looks like their real incomes are finally going up,” O’Sullivan said on a conference call this week.
Thanksgiving, which always falls on the fourth Thursday in November, lands on its latest possible date in 2024. As a result, retailers are adjusting to a holiday season that is five days shorter than last year.
A week before the start of the gift-giving season, electronics chain Best Buy also launched its Black Friday sale. This year, it reintroduced its “doorbuster” sales every Friday, both in stores and online — an event many retailers have avoided in recent years due to concerns about crowded lines and the risk of injury. was closed.
Adobe Digital Insights reported Wednesday that online sales rose 9.6 percent year-over-year during the first 24 days of the holiday season, beating the 8.4 percent growth expected for the season.