Despite concerns about inflation, labor shortages and potential supply chain issues, shoppers flocked to stores the day after Thanksgiving for Black Friday deals – leaving retail experts optimistic about this year’s holiday season.
Like many shoppers across the country, Mark Sampson braved long lines for the chance to score big discounts.
When it comes to inflation, Sampson said that “you watch the prices, that’s for sure.”
“But I’ve seen around here you can get some good deals,” Sampson told Spectrum News in Florida.
Some deals began online on Thanksgiving before spreading to brick and mortar stores on Friday, where shoppers chased the large markdowns that have become common around Black Friday.
Harley Finklestein, the president of e-commerce giant Shopify, said that they’re already seeing a difference between this year and last year.
“Yesterday, peak sales were about 1.52 million per minute at around 6:04 p.m. last year,” Finkelstein said. “That’s up from about 1.49 [million] at the peak last year for Thanksgiving.”
According to a report from the U.S. Bureau of Labor Statistics, consumer prices jumped 7.7% in October compared to last year, down slightly from the month before, but still high. Interest rates are also high, part of the Federal Reserve’s efforts to tame inflation.
Despite these challenges, the National Retail Federation is expecting a 6-8% growth in sales compared to the same period last year.
“Thanksgiving weekend is traditionally the time or to find some of those hot items on sale, you may see more ‘Deal of the Day’ or ‘Deal of the Hour’ promotions,” Katherine Cullen, the NRF’s senior director of industry and consumer insights, told Spectrum News.
“It is important to remember that inflation is not impacting all households, or even all products in the same way,” Cullen added.
Inflation is not the only challenge impacting this year’s shopping season. Stores are scrambling to find workers to handle an increase in demand. The NRF is expecting that retailers will hire between 450,000 and 600,000 seasonal workers, compared to 669,800 last year.
Retailers have also been preparing for potential supply chain bottlenecks, in part due to fears of a potential freight rail strike that could begin on Dec. 9 if several unions do not come together on an agreement for a labor deal.
For now, shoppers are enjoying the savings while they last.
The NRF expects over 166 million people to hit stores this holiday weekend and into Cyber Monday, 8 million more than last year.
