You may have been one of millions scrambling to get some bargain recently, but you may have been wrong to do so. Many economic experts claim that regarding Black Friday, the best deals are still to come, next month.
Black Friday – Excess Stock
During Black Friday sales this year, those wanting to score attractive discounts on holiday items may strike it fortunate. However, waiting can make you luckier.
Concerned that the shortages of the previous year would occur again, businesses stocked up well on clothing, toys, and other items in advance of the holidays.
Concerned that they misjudged demand from consumers struggling with the growing cost of living, they are now lowering prices.
Sales events have already been going on for a few weeks, but analysts predict that as Christmas Day gets closer and businesses are under pressure to move inventory off their shelves, the discounts may get much deeper.
Small Cheer
Since there was insufficient stock the previous year, everything was selling for its full price. This year, there is an excessive amount of inventory and promotions, which will only get bigger as Christmas approaches.
If consumers have the cash to spend, the news is excellent. Globally, there isn’t quite as much holiday cheer in the air as there should be.
Black Friday – Global Survey
According to a survey conducted by consulting firm BCG in nine nations, including the UK, Australia, France, and Germany, only Americans planned to spend more this year than they did last year.
That is consistent with pessimistic predictions from major worldwide retailers like Amazon, which has cautioned that holiday sales are probably going to be sluggish, particularly in its overseas sector.
Expectations for sales are being dampened by this, especially in the US, where consumer spending, the major engine of the economy, has performed better than anticipated this year.
According to the US National Retail Federation, sales would increase by 6% to 8% between November and December of last year, which is a severe decrease from 2021.
Buy Or Not?
Black Friday used to be known for its crush of shoppers, but as online discounts are applied earlier and earlier, it has seen its hold on the shopping season loosen in recent years.
Due to early-October sales events, many consumers have already made purchases this year.
The National Retail Federation continues to predict that this weekend’s sales will surpass the peak of two years ago.
However, as the economy slows and prices for groceries and other necessities rise, early shopping raises the possibility that consumer demand will decline sharply in December.
Demand
Deeper discounts may come if demand declines considerably. Some shops are already planning for that eventuality, with Target assuring buyers in October that the firm will repay the difference if it decreases the cost of an item closer to Christmas.
