‘Black Friday’ becoming a shadow of its former self in US

The U.S. holiday shopping season officially opened with a deluge of “Black Friday” promotions but the frenzied crowds of the past have thinned out with the rise of e-commerce.

Companies in the retail, entertainment and tourism industries once again tried to entice shoppers after Thanksgiving with a bevy of offers on a day synonymous with American consumer culture and notorious “doorbuster” sales that start at the crack of dawn.


But U.S. consumers aren’t buying Black Friday the way they once did.

Only 36% of U.S. consumers plan to shop this year on Black Friday, down one percent from last year and a decline of 23% from 2015, according to a PricewaterhouseCoopers survey.

“Just a few years ago, Black Friday had the aura of a FOMO (fear of missing out) event,” PWC said. “Now it seems more symbolic than significant in the pantheon of retail holidays.”

Black Friday will be followed in three days by “Cyber Monday,” a second highpoint of spending early in the season.

Friday’s sales have prompted copycat versions throughout Europe, an effort that has generated no small amount of friction.

This year’s events prompted protest in parts of France, Germany and the Netherlands that included environmentalist rallies outside Amazon distribution centers and human chains blocking malls.

There has been little sign of that sort of subversiveness in the United States. Rather, the bigger emerging challenge for Black Friday has been shifting consumer patterns.

The PWC survey said that for the first time in 2019 more consumers (54%) said they’ll do more of their shopping online than in stores.


Higher sales expected

Economists and retail industry insiders are broadly confident about the outlook for the 2019 season, owing to a strong labor market.

Consumer spending accounts for about 70% of US economic growth and has stayed strong throughout 2019 even as manufacturing has stagnated and business investment has been lackluster.

“Consumers are in good financial shape and willing to spend a little more on gifts for the special people in their lives this holiday season,” said Matthew Shay, Chief Executive of the National Retail Federation.

The NRF has projected that US consumers will spend an average of $1,048 this year, up about 4% they said they would spend last year.

But increasingly more of those sales are migrating online.

This trend includes Amazon of course, but also traditional brick-and-mortar chains like Walmart and Macy’s that have evolved into “multichannel” retailers, as well as companies and organizations hawking everything from pet food to hotel stays to political merchandise.

President Donald Trump’s “Make America Great Again” merchandise was being once again discounted on the U.S. president’s political website at 35% off.

Democratic presidential candidate Elizabeth Warren of Massachusetts was offering 25% off merchandise orders of $75 or more.

Due to the lateness of Thanksgiving, this year’s holiday shopping season is about six days shorter than last year, prompting more retailers to push up promotions even earlier in the season than usual, according to analysts.

Online consumer spending on Thanksgiving day came in this year at $4.2 billion, up 14.5% from a year ago and the first time above $4 billion, according to Adobe Analytics.


Jason Woosley, a vice president with Adobe, said preliminary data showed Black Friday was also on track to top its performance from last year by almost 19%, with promotions for sporting goods and appliances especially popular.

The data suggested the Thanksgiving day shopping spree hasn’t “stolen any traffic from Black Friday,” he said, adding that about 20% of the overall online sales for the season are expected between Thanksgiving and Cyber Monday. NVG

source: business.inquirer.net

Apple creates website ‘teaser’ for Black Friday event

With the Black Friday shopping spree coming up soon, announcements of sales from different retailers and companies are starting to make their rounds. Apple unveiled a new website in anticipation of this great American sale, hinting possible discounts.

The company has mostly stayed out of Black Friday sales in the past recent years. They would often choose to let retail partners do the price slashing, reports 9T05Mac.

On the website are the words “Friday cant’ come soon enough” which is accentuated by an invitation to check out their products come Friday. It is unclear what this “one-day event” will be and what surprises Apple has in store. The last time they participated in Black Friday was in 2014.

While product discounts are a possibility, the greater likelihood is the offering of gift cards and Apple Music promos. But who knows? A lot of surprising things have already happened this year, and what’s another one from Apple to cap things off?  Alfred Bayle

source: technology.inquirer.net

Black Friday shopping crowds thin after Thanksgiving rush

WEST HARTFORD, Conn./CHICAGO - Mall crowds were relatively thin on Black Friday in a sign of what has become the new normal in US holiday shopping: the mad rush is happening the night of Thanksgiving and more consumers are picking up deals online.

Most major retailers now open Thursday evening and are extending holiday deals rather than limiting them to one day. The result is a quieter experience on what has traditionally been one of the busiest, and sometimes most chaotic, shopping days of the year.

"It just looks like any other weekend," said Angela Olivera, a 32-year-old housewife shopping for children's clothing at the Westfarms Mall near Hartford, Connecticut. "The kind of crowds we usually see are missing and this is one of the biggest malls here. I think people are just not spending a lot."

The crowds normally reserved for Black Friday morning appeared on Thursday night. For instance, more than 15,000 people lined up for the opening of the flagship store of Macy's Inc in New York on Thursday. Retailers also said they were capturing more of the holiday budget online.

Shares of Macy's, Wal-Mart Stores Inc and Target Corp were all up from 2.2 percent to 3 percent on Friday afternoon as investors saw encouraging signs in the long lines on Thursday night and with executives making bullish comments about demand. Lower gasoline prices were also giving the shares a boost, analysts said.

"It's off to a good start," said Charlie O'Shea, a retail analyst at Moody's Investors Service, about the shopping season after visiting nearly two dozen stores in northern New Jersey over the past two days.

Police arrested 11 people associated with the OUR Walmart group for blocking traffic in front of a downtown Chicago Wal-Mart store. The protest was one of 1,600 planned across the United States by the group, which is pushing for higher wages and benefits for the retailer's employees.

"Wal-Mart, Wal-Mart you're no good. Treat your workers like you should," a crowd of several dozen shouted outside the store.

Wal-Mart spokeswoman Brooke Buchanan said: "The crowds are mostly made up of paid union demonstrators, and they do not represent the views of the 1.3 million associates" who work for the company, the largest private employer in the United States.

Buchanan also said one of the demonstrators hit a customer at the Chicago store, prompting a complaint to the police.

Overall Black Friday online sales as of 1200 EST (1700 GMT) were up 6.4 percent from a year earlier, according to IBM Digital Analytics Benchmark. Online sales were up 14.3 percent on Thanksgiving Day.

Wal-Mart said Thursday was its second-highest online sales day ever after last year's Cyber Monday, which is the Monday after Thanksgiving, when online retailers promote bargains.

Target CEO Brian Cornell said his company rang up a record day of online sales on Thursday, and was seeing brisk demand in its stores. He said the company was selling 1,800 televisions a minute between 6 p.m. and 8 p.m. on Thursday night.

Heavy traffic caused the Best Buy Co Inc website to crash for a little over an hour earlier on Friday, but as of afternoon it was back up and running, a company spokesman said.

The National Retail Federation is projecting that sales for November and December will rise 4.1 percent to $616.9 billion, which would mark the most bountiful holiday season in three years. Holiday sales grew 3.1 percent in 2013.

Some shoppers said the price of gasoline - expected to go even lower after the price of crude oil fell to a multiyear low - could make them more inclined to spend.

"My budget is pretty tight this year and gas is a tremendous expense because I have to drive my daughter around a lot," Kristen Akeley, 46, who works at an elementary school, said while shopping for clothes at a Target in Connecticut.

"My gas expense has fallen from $150 a week to $80 a week and that is big savings at this time of the year." — Reuters

7 Black Friday Credit Card Tips You Can’t Afford to Miss

Admit it: You can’t wait to get started on your holiday gift shopping. But if you’re planning to lean heavily on your credit card for Black Friday sales, the Nerds have a few important tips you can’t afford to miss.

Check out the details below for everything you need to know to swipe smart this holiday season (and beyond):

1. Shop with a rewards credit card to rack up serious points

 

The most important thing you can do to make the most of this holiday shopping season is select a card that provides a steady return on your spending in the form of points, miles, or cash back. Then, use it consistently. After all, you’re going to be shelling out big bucks anyway – you might as well get rewarded for it!

2. Use bonus malls to score even more rewards when you shop online

 

 A lot of people forget about the online shopping portals (often known as “bonus malls”) operated by their credit card issuers. If you choose to make your online purchases through these platforms, you stand to earn even more rewards on your credit card spending.

 

One of the best bonus malls out there is the one operated by Discover, known as Discover Deals. If you use your Discover it® and shop through Discover Deals, you could score extra cash back, a statement credit, or instant savings at checkout. This is a great way to help your dollars go the extra mile this holiday season.

3. Use your Chase Freedom® - $200 Bonus for department store shopping

 

If you’re planning to buy a lot of gifts at department stores this Black Friday, be sure to use your Chase Freedom® - $200 Bonus. With it, you’ll earn 5% cash back until December 31, 2014 at select department stores, aw well as Amazon.com and Zappos.com (up to $1,500 spent). Plus, you’ll earn unlimited 1% cash back on all other purchases.

 

And don’t forget: If you also have the Chase Sapphire Preferred® Card, you can transfer all the Ultimate Rewards points you’re racking up with the Chase Freedom® - $200 Bonus over to it and cash them in for travel. Talk about a win-win!

4. Look into your credit card issuer’s extended warranty policy, pronto

 

Lots of people buy electronics on Black Friday, and many retailers try to hock extended warranty coverage at unsuspecting consumers. But it’s highly likely that your credit card already has your back. Every major network (Visa, MasterCard, American Express and Discover) offers some kind of extended warranty on most purchases made with the card.

However, exclusions apply and every card provides slightly different benefits. Consequently, placing a quick call to your card’s customer service line to see what it covers before you hit the mall is a smart idea.

5. Keep a watch on your balance

 

Holiday cheer can be a powerful force, but don’t let it cause you to overspend on your plastic. Using more than 30% of the available credit on any of your cards at any time during the month could do damage to your credit score. If you’re starting to get close to that threshold, make a payment as soon as you can.

6. Use a card that offers price protection to be sure you’re getting the best deal

 

According to a 2014 NerdWallet analysis, Black Friday “deals” aren’t always the absolute lowest prices of the season. To ensure that you’re getting the best price on every gift you buy, shop with a card that offers price protection. MasterCard, Discover, and Citi all provide the opportunity to get some a refund if an item you’ve bought with your card drops in price within a certain window of time.

Again, this functions slightly differently from card to card and there are restrictions to keep in mind. Be sure to read your plastic’s terms and conditions carefully for the ins and outs of its price protection program.

7. Be sure to pay your bills on time

 

If you’re juggling several credit cards to maximize rewards on your holiday shopping, take steps to stay organized. Missing a payment on one of them could cause your credit score to take a serious hit, so set calendar alerts for your billing due dates. This way, you’ll be getting the best deals with your cards and keeping your credit in good shape.

source: nerdwallet.com