Black Friday and Cyber Monday deals have been stretched into an entire week, yet experts found that discounts below 40% aren’t cutting it.
The National Retail Federation predicted 182 million people would shop between Thanksgiving Day and Cyber Monday, the highest estimate since 2017. Throughout those shopping days, consumers were met with early sales and deeper discounts for popular holiday purchases, which continued over a more extended period.
By this time, Americans’ spending records
with sales totaled $9.8 billion on Black Friday and $12.4 billion on Cyber Monday, Business Insider reported. The average discount this year on Cyber Monday was 38.4%, which increased from 37.6% on the same day in 2022.“Unless you are getting a 40% discount, you are just getting an everyday discount that you can get any other time of the year,” said Jharonne Martis, London Stock Exchange Group’s director of consumer research, during a recent appearance on CNBC’s Worldwide Exchange.
Adobe, which tracks online sales, released a report in October expecting to witness record-high discounts for many familiar categories of gifts, especially during Black Friday and Cyber Monday. These included a 35% price drop for toys, electronics, apparel, sporting goods, TVs, appliances, and furniture.
Predictions also revealed that shoppers were planning to avoid the crowds, spending more time shopping online than in stores on Black Friday. According to Martis, the 40% deals are mostly displayed at department stores, apparel shops, and your local mall.
The Wall Street reported on several factors behind the falling prices. The demand for goods has
declined as consumers spend more on experiences like travel and concerts. Retailers also hope to offset high inflation prices and credit card rates. At the same time, many American consumers are more cost-conscious and worried about the cost of rent and groceries exceeding their income.To manage inflation, the Federal Reserve drove interest rates to their highest level in 22 years, with credit card rates above 20%.
“Shoppers know what
they want and know what they want to buy and were waiting for the best possible deal as they are trying to be really conscious with their money,” Kraig Foreman, shipping company DHL supply chain e-commerce president, told CNBC’s Worldwide Exchange.Though deals have spread, inflation is still a looming conversation.