By Neil J Kanatt and Chandni Shah
(Reuters) -Retailers in the U.S. are gearing up for Black Friday, the day after Thanksgiving, which kicks off the holiday shopping season that typically account for a third of U.S. retailers’ annual profits.
WHY IS IT CALLED ‘BLACK’ FRIDAY?
In the early 1960s, police officers in Philadelphia described the chaos that resulted from a large number of suburban tourists coming into the city to begin their holiday shopping as “Black Friday”.
The phrase did not describe a positive boost in retail sales until the late 1980s, when merchants spread the narrative of being “in the red” until the day after Thanksgiving, when massive sales allowed them to turn a profit, or put them “in the black”.
HOW MUCH ARE SHOPPERS EXPECTED TO SPEND?
The National Retail Federation (NRF) expects 186.9 million Americans to shop in the five days between Thanksgiving and Cyber Monday, which would be a record, surpassing last year’s 183.4 million.
Sales for November and December together are expected to surpass $1 trillion for the first time, but sales growth is expected to slow to a range of 3.7% to 4.2%, lower than last year’s 4.8% increase.
Consumers plan to spend $890.49 per person on average, NRF said.
The slower sales growth mirrors the sentiment from muted holiday shopping forecasts from other major data firms.
Persistent inflation and lingering trade policy effects have pushed consumers to avoid splurges and hunt for bargains as several retailers, including Tapestry, Bath & Body Works and Deckers, have recently issued cautious holiday forecasts.
Adobe Analytics said in October discounts in online retail platforms would likely reach up to 28%, similar to last year, though shoppers will trade up to higher-value items with the best discounts.
EARLY DEALS LOCK IN SALES
Retailers have rolled out early promotions. Walmart’s began on November 14 and will run in three phases through December 1, with Walmart+ members getting early access.
Amazon started its Black Friday deals week on November 20, similar to last year, and Macy’s opened a dedicated “early access” portal on November 10. Kohl’s started its sales on November 7, while Target started promoting deals on its website on November 23.
WHAT’S IN THE CART?
Walmart’s featured deals include an 85-inch TCL Roku TV, originally priced at $678, marked down to $498 for Black Friday, according to a Reuters review of the retailer’s website. This year’s lineup also features a Blackstone outdoor grill offered at $157, down from its $225 list price.
Best Buy has deals on a 65-inch Samsung TV marked down 50% to $1,000 for Black Friday, and Lenovo Yoga and HP laptops priced originally at $1,050 and $820, respectively, marked down to $630 and $430.
Ulta Beauty is offering discounts on popular makeup, body, skin and hair care brands such as Sol de Janeiro, Olaplex, Tarte, MAC and Estee Lauder.
Apple is offering a gift card up to $250 on select products during the Cyber Weekend. Amazon is offering Apple’s MacBook Air models on Black Friday with discounts of at least 21%, according to the retailer’s website.
(Reporting by Neil J Kanatt and Chandni Shah in Bengaluru; Editing by Arun Koyyur)
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