Proactive Investors - Black Friday 2023 is kicking off with US consumers waking up to the most affordable shopping period in years, according to new data.
Data from the Bureau of Labor Statistics indicates that toys, games, hobby gear, and sporting goods are set to be less expensive this holiday season compared to previous years, Reuters reported.
The prices of various items, including TVs, men's suits, outerwear, sports coats, women's dresses, and audio equipment, have decreased by 8% to 14% compared to pre-pandemic levels.
Consumer prices are falling as supply chain disruptions caused by the pandemic and a shift in demand from services to goods have eased. Walmart (NYSE:WMT) and Target (NYSE:TGT) have reported declines in prices for general merchandise, enabling them to offer lower prices this holiday season.
Black Friday discounts at major retailers range from 30% to 50%, and further discounts may be seen later in the season.
In recent years, however, many retailers have started to launch their Black Friday sales early, sometimes even days or weeks in advance.
“Early” Black Friday allows consumers to take advantage of discounted prices and special offers ahead of the official Black Friday, providing an extended period for holiday shopping.
Retailers are responding to signs of a consumer pullback by offering aggressive discounts. Walmart and Target are promoting deals on dolls, Lego sets, winter clothing, baby products, and Christmas decorations priced at or below $35. Other retailers, including Macy's (NYSE:M), Dick's Sporting Goods, and Lowe's, have expanded their price promotions to a broader range of categories compared to the previous year.
That said, industry leaders are forecasting a potentially less robust holiday season compared to previous years.
In a break from six consecutive months of growth, US retail sales fell 0.1% in October, a shift attributed in part to declining prices for gasoline and cars, as reported by the Commerce Department.
Although September's figures were revised upward from an initial 0.7% gain to a robust 0.9%, economists anticipate a slowdown in consumer spending in the final quarter of the year.