Today’s Black Friday Sale Strategies and Consumer Spending Habits

The fourth Friday of November is huge for both retailers and consumers. This beginning of the holiday sale is an opportunity for retailers to overstock their inventory to meet the high demands of purchasing after the Thanksgiving tradition; conversely, it gives consumers the chance to avail as many items on sale. Whether discounts, deals, coupons, bonuses, or gift cards for both in-store and online shopping, everyone is hooked to this annual purchasing event.

Black Friday Sales in Recent Years

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Each year, stores prepare for the busiest sale days of the year. Commercial stores offer doorbusters to lure customers to purchase a certain item upon opening the store doors. They typically market huge discounts on appliances, electronics, toys, clothing, and other personal items. 

Photo from https://media.npr.org/assets/img/2019/11/30/black-friday-1_custom-7ff93000cee533dcb0d7bb5abdf626d455ccf378.jpg

A report cited that there is a 20% discount from Thanksgiving week and 37% discount on Black Friday in physical stores; while 34% discount rates for online stores.

At the peak of contactless transactions, online shopping has been a prevalent avenue for retailers. There are ways these retailers promote their deals online:

• Email newsletters are widely used by companies to stay connected with their target audience via personalized and exclusive copies. It was reported that 87% of marketers use these for discount updates.
• A more rampant approach is social media engagement. Retailers use unique hashtags, advertisements, and influencers to boost their Black Friday Sale online. 
• Surprisingly, SMS is also an effective way to inform target consumers of a company’s Black Friday sale bonanza.

Consumer Trends 

An article shows that 74% of consumers intend to take advantage of the deals during Black Friday this year due to the rising cost of living. As early as October, consumers begin hunting for the biggest sale events to ensure that they avail their favorite items. But aside from discounts, free shipping and bundle deals are highly preferred by the consumers in recent years. These exciting promotions mobilize consumers to punch their way in Black Friday sale events.

A survey by Statista shows that 75% of Australian consumers planned to make at least one purchase for this year’s Black Friday sale, while many of them intend to make a purchase online.

In New Zealand, on the other hand, a recent report shows consumers planned to spend 10% more this year compared to the previous year despite the crisis in the cost of living. 

The buy now, pay later payment method drove huge orders during Black Friday last year. This is the same reason why a lot of consumers will still make purchases for this year. With the continued rising inflation rates, consumers are finding ways to extend their money and save more from deals during sale events. 

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According to an article, mobile shopping during Thanksgiving allows consumers to stay updated to the latest deals, smoother payment method, and better shopping experience. In fact, during last year’s Thanksgiving, it was reported that there were 55% online retail sales, which is 8.3% higher than the previous year.

Indeed, Black Friday sales are beneficial for both retailers and consumers.