{"id":36925,"title":"US Retailers Extend Black Friday Sales Period as Consumer Spending Shows Signs of Weakening|","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2024-11-25T06:42:14+00:00","modified":"2024-11-25T06:42:14+00:00","canonical_url":"https://stockmark.it/us-retailers-extend-black-friday-sales-period-as-consumer-spending-shows-signs-of-weakening/","markdown_url":"https://stockmark.it/us-retailers-extend-black-friday-sales-period-as-consumer-spending-shows-signs-of-weakening.md","json_url":"https://stockmark.it/us-retailers-extend-black-friday-sales-period-as-consumer-spending-shows-signs-of-weakening.json","category":"Inflation","categories":["Inflation","Retail","US Economy"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/stencil.default-2024-11-25T064139.636.jpg?fit=1200%2C800&quality=89&ssl=1","format":"news","language":"en-GB","content":"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.\n\nIndustry 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.\n\nThe 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.\n\nGregory 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.\n\nConsumer 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.\n\nTarget’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."}