Stores stepped up discounts and other enticements on Black Friday to entice shoppers holding out for the best deals. But retailers worry those may not be enough.
Consumers are coming under pressure as their savings dwindle and their credit card debt grows. And although they have gotten some relief from easing inflation, many goods and services like meat and rent are still far higher than they were just three years ago.
Yvonne Carey, 72, was among the first shoppers at Macy’s Herald Square store in Manhattan where she snapped up discounted Michael Kors slippers and a pair of Ugg boots for herself. But Cary said she plans to stick to same budget as last year, about a $1,000, as she shops for gifts for her six grandchildren and her husband.
At Macy’s Herald Square store, shoppers began streaming in soon after the doors opened at 6 a.m., finding discounts of between 40% and 50 % on almost all boots and shoes. Diamond jewelry was discounted by 60%. Many handbags had 50% price cuts.
Macy’s CEO Jeff Gennette told The Associated Press the crowds at Herald Square and other locations were bigger than last year, though he declined to give figures.
Facing competition from travel and restaurants, Macy’s stepped up experiential shopping this season. Herald Square, the Disney Princess shop has augmented reality allowing customers to virtually step into one of the princess dresses.
“The customer is under pressure. You see it with what is going on in luxury. That is a recent development,” Gennette said, adding that shoppers across all income levels are ”more discerning about how they are spending their budget.”
Best Buy said it’s pushing more items at opening price points, while Kohl’s has simplified its deals, promoting items under a certain price point like $25 at its stores.
Target said shoppers are waiting longer to buy items. For example, instead of buying sweatshirts or denim back in August or September, they held out until the weather turned cold.
“It’s clear that consumers have been remarkably resilient,” Target’s CEO Brian Cornell told analysts last week. “Yet in our research, things like uncertainty, caution and managing a budget are top of mind.”
Gone are the Black Fridays of years ago when customers would stand in line for hours in the middle of the night, or brawls would break out between shoppers over high demand items.
Friday’s scene was mostly tame, aside from a big mall in New Jersey, just outside New York City, being evacuated for a bomb threat, authorities said. People in the area of the American Dream Mall received emergency alerts on their cell phones telling them to use the nearest exits. The mall was deemed safe and returned to normal operations after the New Jersey State Police Bomb Unit and K-9 unit performed sweeps for explosive devices and found none.
Salesforce said online sales rose 1% to about $7.5 billion year-over-year on Thanksgiving, as retailers offered better deals. Sales of shoes and handbags increased the most at 11% compared to last year, followed by a 6% rise in sales of healthy and beauty products. Global online sales also rose 1% to $31.7 billion, according to Salesforce, which tracks data from more than 1.5 billion consumers.
