Retailers hope bigger Black Friday deals will encourage holiday shoppers

NEW YORK — After pushing through early deals for weeks, retailers in the United States and some other countries tried to tempt customers with the promise of bigger discounts on Black Friday, the sales event that is still considered the unofficial kickoff of the holiday shopping season, even if this the case has lost some of its luster.

Department stores, malls and retailers — big and small — are looking at the day after Thanksgiving as a way to energize shoppers and lure them into physical stores at a time when many gift seekers do the majority of their shopping online.

According to retail technology company Sensormatic Solutions, there must still be enough traditionalists as Black Friday remains the biggest day of the year for retail traffic in the US.

“Black Friday is still an incredibly important day for retailers,” said Grant Gustafson, head of retail consulting and analytics at Sensormatic. “It’s important for them to attract customers to their store and give them the experience of browsing and touching and feeling items. It may also be an indication to retailers of what to expect for the rest of the holiday season.”

READ MORE: Why retailers still consider Black Friday the peak of the holiday shopping season

There was a steady stream of shoppers at Macy’s Herald Square in Manhattan starting at 7:30 a.m. Friday, an hour and a half after the flagship store opened. Discounts included 40% to 50% on most boots and shoes. Many handbags were also priced at half price.

Keressa Clark, 50, and her daughter Morghan, 27, were visiting New York from Wilmington, North Carolina, and arrived at the store at 6:15 a.m. “We set the alarm for 5 and were out the door at 6,” Morghan Clark said. “Where we come from, we don’t have Macy’s. I’m actually shocked to see so many Black Friday deals because so many things are online.”

Clark, who works as a nurse, said she feels better about the economy because of President-elect Donald Trump’s impending return to the White House and plans to spend $2,000 this holiday season, about $500 more than before a year because she was feeling better, optimism.

She said she wouldn’t mind if prices rose next year because of Trump’s promised tariffs on foreign-made goods. “Anything that can encourage manufacturing in the U.S. I’m all for,” Clark said. “I’m okay with paying higher prices.”

In the U.S., analysts are predicting a solid holiday shopping season, although perhaps not as robust as last year, as many shoppers are under financial pressure and are cautious about their discretionary spending despite easing inflation.

With five fewer days between Thanksgiving and Christmas this year, retailers are even more focused on getting shoppers to buy early and in bulk.

The Mall of America in Bloomington, Minnesota, was hoping to surpass the 12,000 shoppers who arrived last year within the first hour of the massive mall’s 7 a.m. opening. This year, the mall is giving a $25 gift card to the first 200 people in line at the mall’s north entrance.

“People come to get the deals, but more importantly, they come for the excitement, energy and traditions surrounding Black Friday,” said Jill Renslow, Mall of America’s chief business development and marketing officer .

Target is offering an exclusive book about Taylor Swift’s Eras Tour and a bonus edition of her album The Tortured Poets Department: The Anthology, which will be available in stores only on Black Friday before customers can purchase it online starting Saturday.

Best Buy has introduced an expanded version of the door opener, with time-limited daily discounts that have been all the rage for years – and sometimes sparked real fights. The country’s largest consumer electronics chain has been releasing great deals every Friday since November 8th and plans to continue the weekly promotion until December 20th.

“(Stores) are very hungry for Black Friday to do well,” said Marschall Cohen, chief retail consultant at market research firm Circana. “They realize that they won’t overspend on online business and will see big gains because the pie has become so competitive. They have to find a way to win in stores.”

Impulse purchases and self-gifting are a potential area for big sales growth, and the business won’t grow without them, Cohen said. According to a study by Circana, shoppers are three times more likely to make a spontaneous purchase in a physical store than online.

The National Retail Federation predicted shoppers would increase their spending by 2.5% to 3.5% in November and December compared to the same period last year. During the 2023 holiday shopping season, spending increased 3.9% compared to 2022.

Online sales have exceeded expectations so far this holiday season, according to Adobe Digital Insights, a division of software company Adobe. U.S. consumers spent $77.4 billion online from Nov. 1 to Nov. 24, up 9.6% from the same period last year. Adobe forecast a full-season increase of 8.4%.

READ MORE: Why your holiday shopping probably won’t be affected by tariffs

Despite the early sales, Adobe says there are better deals to be had on Black Friday. Analysts view the five-day Black Friday weekend, which includes Cyber ​​Monday, as a key barometer of shoppers’ willingness to spend the rest of the season.

Vivek Pandya, senior analyst at Adobe Digital Insights, said shoppers are paying more attention to discounts than last year and that their focus on bargain hunting will determine what sells and when.

For example, according to Adobe’s analysis, Thanksgiving is the best time to shop online to get the biggest discounts on sporting goods, toys, furniture and home appliances. But Black Friday is the best time to buy TVs online. People who bought a TV early in the season found discounts averaging 10.8%, while waiting until Friday is expected to bring a 24% discount, according to Adobe Digital Insights.

However, Cyber ​​Monday is expected to be the best time to buy clothes and gadgets such as phones and computers online. According to Adobe, electronics discounts peaked at 10.9% off the manufacturer’s suggested price between November 1 and November 24, and are expected to reach 30% on Cyber ​​Monday.

According to Adobe’s research, Black Friday weekend discounts are expected to peak at 30% on Cyber ​​Monday and then fall to around 15%.