In the United States, the sales numbers from Thanksgiving Day and Black Friday are starting to pour in, and they aren’t very pretty for retailers and the overall consumption economy.
The National Retail Federation (NRF) reported 1.8 million fewer customers shopped on Thanksgiving Day compared to 2013. Meanwhile, the retail group highlighted that 5.1 million fewer people were shopping on Black Friday, a seven percent decline from last year. During the entire four-day long weekend, there were five percent fewer shoppers.
Business analysts attribute this steep drop to two things: online shopping and sales allocated throughout the entire holiday shopping season.
It has been reported that consumers spent more than $1 billion on Thanksgiving and Black Friday, a sign that the madness of Black Friday may perhaps be dwindling – there weren’t that many videos showcasing the craziness behind the monumental day for retailers.
Moreover, retailers aren’t putting all their eggs in one basket. Instead of concentrating their efforts on one specific day, merchants are holding week-long and even month-long Black Friday promotions in the final weeks heading into Christmas.
The same organization forecast a 4.1 percent increase in holiday shopping this year. It still stands by this projection.
Is this the end of Black Friday in the U.S.? Who knows? It’s just getting started in Great Britain!
Many consumers don’t think the economy has recovered from the recession yet, that makes it difficult to gauge how much they plan to spend.
I think people just can’t afford Christmas like they used to. Unemployment is at a record high. The only jobs available are low-level temp jobs. Most people had their health insurance cancelled and cannot afford new policies (mine is $650/month… contrast this to my $25/month auto insurance from Insurance Panda… or my $12/month renters insurance from Eagle… both private-enterprise!). Rent and home prices are going up, up, up even though wages are staying the same.
Stock Market recovery and expansion is NOT Economic recovery and expansion…
The Global Economy continues to weaken…