US retailers have offered lesser discounts to bargain hunters out in the cold of this Black Friday. Many shoppers discovered that most US retailers were forced to a lesser markdown as supplies remained tight with the logistics logjam.
There were fewer ‘doorbuster’ sales this year and that was compounded by the fear of the new variant of the COVID-19 virus, Omicron, that has been spreading fast across Africa and has crossed into the US.
These two factors combined to dampen shopper sentiments to a large extent after Thanksgiving which heralds the shopping spree at the end of the year.
Unfortunately, the WHO, named the freshly discovered COVID-19 variant, Omicron and said that it was a matter of concern. It triggered panic worldwide and a fall in the American stock market.
Stores reported that the clearance of goods was the lowest in over five years. Many shoppers avoided the main stores and instead picked up their requirements from the curbside market.
By 2100 ET, consumers spent around $6.5B. total sales Black Friday sales are expected to be between $8.8B and $9.2B.
Innovative Market Practices Helped Pick Up Sale For Target And Walmart On Black Friday
The buy online and pick-up concept introduced by Target and Walmart worked as they managed to outperform other retailers. Target managed to add over 18,000 spaces for parking, which was double than what was managed last year.
Fourth-quarter margin profits are likely to be lower as higher costs of labor, raw material, and freight, and tight inventory.
The sales figures shouldn’t see much of a drop as retailers are giving lesser discounts. But the margins are not expected to rise higher caused by soaring inflation.
Multiple rounds of government support have ensured that customers are going into the shopping season with surplus cash in hand. Workers have also benefitted from the shortage of workforce as it has led to an increase in wages.
Surveys reveal that people spend close to 85% of the holiday budget ahead of Black Friday.
