🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Black Friday shoppers expected to see some of the lowest prices in years

Published 2023-11-24, 09:30 a/m
© Reuters Black Friday shoppers expected to see some of the lowest prices in years
WMT
-
TGT
-

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.

Read more on Proactive Investors CA

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.