Thanksgiving Festivities and Retail Therapy: Global Market Stimulants
Nov 28, 2022
The retail market is being taken by storm, owing to the buzz and perks of the most celebrated days worldwide.
Both these days go hand in hand. With the Black Friday Sale falling just after Thanksgiving Day, people are immersed in a whole different mood of spreading love, being grateful, reflecting, reminiscing and the cheery vibes of holidays. The weekend is the cherry on the cake for the retail industry leading to heavy in-store and online traffic.
Black Friday is not just a 24-hour sale, over the years, it’s taken the shape of a Black November (that even extends till December), a festive month of doorbuster sales, deals and offers that often begin as early as October.
It’s a gaga time for both the sellers and the buyers, benefiting the former with huge chunks of revenue and the latter with enormous discounts and savings, making it the most awaited sale of the year.
According to the annual survey by the National Retail Federation and Prosper Insights & Analytics (NRF), over two-thirds (69%) of holiday shoppers plan to indulge in shopping during Thanksgiving weekend this year.
The reasons vary for everyone but the dominant reasons why consumers plan to splurge are:
59% of shoppers don’t want to miss out on the too-good-to-pass deals
27% of shoppers do it out of the set tradition
22% of shoppers reckon that’s what to be done over the holiday season
Last year, owing to inadequate inventory and supply chain issues, out-of-stock notifications surged to 124% compared to the pre-pandemic January 2020.
Thankfully, this year, there’s sufficient inventory and a range of promotions that are expected to amplify as Christmas nears. The consumers are in luck if they have the money to spend.
Although the supply chain gap has somewhat resolved, inflationary pressure is still a major cause of concern, and customers want to save as much as they can for a rainy day.
While people prioritize these holidays as it’s about love, emotions and being grateful to others, they are certain to reconfigure their budgets to continue celebrating these traditional occasions.
To combat the gloomy situation rising out of inflationary pressure, Buy-now-pay-later (BNPL) solutions like Afterpay, Sezzle, PayPal’s Pay in 4 and Plan It by American Express have come as a ray of home and are gaining traction as more and more consumers are finding ways to manage their holiday budgets.
The proceeds from BNPL solutions followed an upward trajectory of 422% in November 2021 and are over and above the pre-pandemic levels of November 2019 for online shopping, which is sure to rise further to USD 3.68 Trillion by 2030, maturing at a CAGR of 45%.
Considering the sales and shopping that started as early as October this year, the rise of early shopping has risen the risk of buyer demand falling sharply in December, owing to the pace of the economy that gradually slows down, and the mushrooming prices of groceries and other necessities that obstruct impulse purchasing.
It’s more like a to-buy-or-not-to-buy situation for potential shoppers as if demand decreases and inventories last, the discounts are likely to go deeper as Retailers like Target have already promised the buyers from October to get a refund of the extra amount they have spent if prices are cut closer to December. Therefore, the buyers may be in luck if they consider waiting long for further slashed prices.
While shoppers have access to shopping through both mediums like online and in-store, as per data by NRF, this Thanksgiving holiday weekend is projected to witness booming store congestion with a record-breaking count of shoppers resorting to the perks of value-pricing. Among 69% (114.9 million) of people looking forward to Black Friday, 67% prefer in-store shopping, which has risen from 64% in 2021. Following Black Friday is Cyber Monday with expected shoppers of 38% (63.9) million.
The festive occasion of Thanksgiving followed by the Black Friday sale is gaining a lot of traction globally and inviting lucrative returns. According to Future Market Insights (FMI), the growing popularity of the occasion beyond the borders of the United States and the constant influx of enticing deals is expected to navigate the market to US$ 123.9 Billion by 2032. Also, the global Black Friday sale market’s net worth is said to be around US$ 273.1 Billion in 2022 and flourish at a CAGR of 15.2% from 2022 to 2032.