Black Friday Deals Occur Earlier Than Usual This Year, Signaling Concerns About Holiday Demand
By Jessel Renolayan
Nov 18, 2023 03:10 AM EST
Nov 18, 2023 03:10 AM EST
October has reportedly witnessed a notable surge in early Black Friday discounts, surpassing levels seen in previous years. According to CNBC, this upward trend suggests that retailers are concerned that demand could be high during the crucial holiday shopping season.
Recent data from Adobe Analytics sheds light on this trend, indicating substantial increases in promotions across various sectors, such as apparel, appliances, and computers, last month compared to 2021 and 2022.
Online apparel prices witnessed a notable 9% drop throughout October, a sharp contrast to the 2% and 5% decreases recorded in 2021 and 2022, respectively.
This surge in early discounts suggests a proactive strategy by retailers to navigate potential challenges and stimulate consumer interest in the face of uncertainties.
According to its analysis, among the eight holiday-popular categories meticulously monitored by Adobe, only electronics and toys exhibited a lower discount reduction last month compared to the corresponding period in prior years.
That implies a contrasting pattern within these specific markets, where retailers appear to have applied a more restrained approach to promotional pricing compared to the broader trend observed across the other holiday-driven product categories.
An analysis of US retailers from research firm GlobalData also shows that both the depth of discounts and the total amount of items on sale last month also came in higher than in the past four years.
According to CNBC, the early and high discounts, which are predicted to reach record highs this holiday season, are not necessarily a sign of tough economic times ahead.
However, an expert told the outlet that the trend provides insight into the increasingly cautious consumer state and retailers' steps to drum up demand and remain competitive against persistent inflation.
Daniel Rubin, a professor and an expert in consumer behavior from St. John's University's Peter J. Tobin College of Business, told CNBC: "It shows a concern that they're worried about the holiday season. They're concerned that it's not going to be super strong."
Before Thanksgiving, Amazon is setting the stage for an early Black Friday shopping extravaganza, unveiling enticing deals on in-demand gifts inspired by beloved television shows and movies, particularly items from Marvel, Disney, and Star Wars franchises, ET Online reported.
The e-commerce giant's strategy to roll out Black Friday-level discounts ahead of the traditional Christmas shopping season anticipates a surge in demand for products associated with popular entertainment.
With unbeatable price reductions on best-selling toys, it comes as no surprise that these digital shelves are likely witnessing a rapid depletion as shoppers eagerly seize the opportunity to get items at remarkably low prices.
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