Major American retailers are transforming the traditional single-day Black Friday shopping event into a weeks-long sales extravaganza as they grapple with signs of diminishing consumer spending power. The strategic shift comes as retail data indicates a concerning downturn in consumer activity, despite the approaching holiday season.
Industry giants including Walmart, Amazon, Target, and Macy’s have already launched substantial discounts under their Black Friday campaigns, well ahead of the traditional post-Thanksgiving shopping day. The extended promotional period reflects mounting pressure on retailers, as recent data from Circana reveals a 3% year-on-year decline in general merchandise unit sales for the week ending 16 November.
The National Retail Federation projects holiday sales to reach nearly $1 trillion in November and December, averaging $902 per person. The anticipated growth rate of 2.5-3.5% represents the slowest expansion since 2018, signalling potential headwinds for the retail sector.
Gregory Daco, chief economist at EY Parthenon, observes that retailers are implementing a dual-strategy approach, targeting both budget-conscious consumers through aggressive discounting and attempting to capture high-income shoppers through extended promotional windows. This tactical shift reflects diminishing pricing power amid persistent inflation concerns.
Consumer sentiment remains notably subdued, with University of Michigan surveys indicating frustration over sustained high prices despite moderating headline inflation. The possibility of renewed tariffs under a potential future Trump presidency has sparked concerns about additional inflationary pressures and economic growth constraints.
Target’s chief executive, Brian Cornell, acknowledges the evolving consumer behaviour, noting increased price sensitivity and strategic shopping patterns. The retailer has responded with an extended promotional calendar, offering significant discounts on seasonal merchandise through month-end. Similar strategies have been adopted by Walmart, Amazon, and Home Depot, with promotional periods spanning several weeks to capture maximum consumer engagement.
Post Disclaimer
The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.
This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.
The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.