By Katherine Masters
NEW YORK, November 24 (Reuters) – Retailers are hoping for cool, dry forecasts black friday across much of the United States will drive millions of shoppers to their stores in the run-up to the key holiday shopping.
But with many shoppers facing financial pressure, American holiday spending is expected to increase at the slowest speed in five years. most important retailers cut their seasonal employment.
“Consumers are still very cautious, so if holiday sales pick up, we think it will be because of inflation pushing up prices,” said Jessica Ramirez, senior research analyst at Jane Hali & Associates.
American shoppers plan to spend an average of $875 on holiday shopping — $42 more than last year — with clothing, gift cards and toys at the top of most shopping lists, according to a survey of 8,424 adults conducted in early November by the National Retail. Federation, an American retail trade group.
It estimates that a record 130.7 million people will shop in-store and online in the United States on Black Friday this year.
Originally known for crowds lining up at big-box stores in the US, Black Friday has moved online and gone global.
In France, Italy and Spain, most shoppers planned to buy clothes on Black Friday, with electronics coming in second, according to a PwC survey.
On average, shoppers in France expected to spend 295 euros ($322) on Black Friday according to the survey.
Executives say the rise of online shopping made Black Friday less important as a one-day event. Retailers from Macy’s to Amazon now launch deals as early as October and often offer additional discounts closer to Christmas, Macy’s CEO Jeff Gennette told investors this month.
Most US stores were closed on Thanksgiving but will open to shoppers at 5 or 6 a.m. Friday. A coalition of activist organizations, including anti-war group Act Now to End War and End Racism, called for “disruptions and rallies” at major shopping centers on Black Friday to demand a ceasefire and an end to aid to Israel. The New York Police Department said Wednesday that “there are currently no credible threats to any individual event or to New York in general” over the holiday weekend.
In post-earnings calls this week, Kohl’s retailersKSS.N to Nordstrom JWN.N told investors they were investing in jackets, cashmere sweaters and Ugg boots to lure Christmas shoppers after an unseasonably warm October. Macy’s M.N also advertised Black Friday deals on seasonal clothing, including 60% to 65% off men’s and women’s clothing, according to its website.
Sure, some retailers are holding their biggest discounts for the Thanksgiving holiday weekend, and big box players including Walmart. WMT.NLowe’s LOW.N and Home Depot HD.N maintained or deepened their advertised discounts.
Whether those deals will convince inflation-weary consumers to open their wallets is the biggest concern for retailers on friday Several categories of goods that have been top sellers on Black Friday in previous years have been hit hardest by the recent decline in discretionary spending, said Mari Shor, senior analyst at Columbia Threadneedle Investments.
Best Buy BBY.Nfor example, is offering between $100 and $1,600 worth of electronics including laptops, flat-screen TVs and KitchenAid mixers after telling investors this week that buyers are still holding back on big-ticket purchases.
A decline in luxury spending has also prompted department stores, including Bergdorf Goodman and Nordstrom, to offer steep discounts on items such as Balenciaga shoes and Oscar de la Renta earrings. “Designer remains under pressure, particularly in shoes and handbags, and we continue to adjust our inventory to meet that demand,” Nordstrom President Pete Nordstrom told investors on Tuesday.
Mall owner Westfield said it expects more visitors to its UK shopping centers this year than in 2022, with footfall up more than 6% so far this week, according to Katie Wyle, head of shopping center management at Unibail-Rodamco-Westfield.
($1 = 0.9168 euros)
EXPLAINER-What is Black Friday? And will shoppers find bargains this year?
FOCUS US retailers are left with excess stock offering discounts as the holiday season approaches
US retailers are bracing for a tough holiday season despite discounts
Walmart sounds note of consumer caution ahead of holidays, shares fall
Target shares rise on margin improvement, stock pick-up
US holiday sales slowest year since 2018 as consumers turn frugal – report
ANALYSIS-A reduction in excess savings could dent markets’ soft hopes
ANALYSIS-Santa’s sleigh will be lighter as people buy fewer toys
Walmart staffed for holidays; US retailers cautious about economy
US holiday sales growth to slow as inflation pinches wallets – report
Toymakers Hasbro, Mattel drop after sounding alarm over holiday spending
US economy cools as retail sales decline, monthly producer prices decline
Walmart is betting on parcel stations for quick deliveries to propel holiday sales
Best Buy flags weakening consumer demand in the holiday shopping season
Amazon, Walmart court early holiday shoppers in the US with limited-time offers
US online sales will grow 4.8% in crucial holiday season report
FACTBOX-US companies unveil contract plans ahead of holiday shopping
GRAPHIC-Over 16% of retail sales in the US are returned
CHART-US holiday sales expected to accelerate this year
US holiday sales were expected to accelerate this year
More than 16% of retail sales in the US are returned
(Reporting by Katherine Masters, additional reporting by Mimosa Spencer in Paris and Helen Reid in London; Editing by Josie Kao and Miral Fahmy)
((Katherine.Masters@thomsonreuters.com;))
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