Black Friday Approaches as Consumer Spending Slows: Retailers Prepare for Prime SeasonNovember 23, 2023
Retailers voiced concerns about a spending slowdown. Shoppers had exhibited resilience, despite higher prices and borrowings. Nonetheless, we see consumers grappling with falling savings, greater credit card debt, and persistent inflation. Consequently, retailers such as Walmart and Best Buy reported a weakened consumer. Consequently, companies such as Walmart, Best Buy, and Target reported a weakened consumer, who are purchasing less. Moreover, luxury retailers such as Saks have observed a drop in sales. This year, the National Retail Federation is expecting less spending. This is a stark contrast from the past year’s 5.4% growth. Given the situation, retailers are anticipating a surge in last-minute shopping. Online discounts are expected to be better, especially for electronics, toys, and clothing. Historically, the five-day Black Friday weekend has been a key indicator of consumer spending. Despite this slowdown, Black Friday is still anticipated to be one of the busiest shopping days, as it has been historically.