27 Nov 2019
Regarded as the biggest sales event of the year, Black Friday seems to always introduce a new side of an individual – rushing into stores to make sure to get the best deal from the event’s sales.
Since Black Friday always lies on the day following Thanksgiving, the trend is for the sales to begin then, or earlier. Most retailers put their products on offers just for the day, but others, including Amazon, Currys PC World, John Lewis and Argos already having started offering deals.
The link between Black Friday and the economy is a simple one: a strong driving point for the economy is consumer spending. In 2018, the number of Americans who went shopping in stores and online was 165 million, spending around $6.2 billion.
The event also helps retailers kick off the festive shopping season and boost profits. The food industry also gains from such an event, mainly because of Thanksgiving. Just how businesses prioritise their Black Friday performance and sales, traders and investors also get to see how healthy the retail industry is by looking at the results of the day. Lower Black Friday sales and numbers indicate a slowing economy, according to Keynesian assumptions.
The National Retail Federation predicts that this year’s Black Friday sales will rise by 4.1% compared to last year. The ongoing trade war between the U.S. and China is not expected to hinder any sales. Mastercard SpendingPulse reported that, excluding automobiles sales, its sales increased by 5.1% YoY. During the period between November 1st and December 24th, 2018, there was a 19.1% increase in online sales.
As a consumer, you might want to get the best deals on Black Friday, but if you do not manage to get the one you were looking for, you could wait for the following Monday, coined Cyber Monday for more deals.