Economists consider Black Friday a key gauge of consumer confidenceBlack Friday is the day after Thanksgiving and is seen as the start of the critical holiday shopping season when stores offer big discounts on electronics, toys and other gifts. It is also an important day for retailers, who are eager to turn a profit after losing money during the rest of the year. The term “Black Friday” first became popular in Philadelphia, where it was a nickname for the chaotic traffic and long lines at retail stores on the day after Thanksgiving. The name then spread to other cities, and it eventually took hold worldwide as a reference to the shopping madness that occurs on this day. Retailers plan their Black Friday sales well in advance. They may spend an entire year preparing for this key event, offering doorbusters and deep discounts on overstock inventory that isn’t selling during the rest of the year. They also make special deals on products they want to sell in large quantities during the holidays, such as seasonal decorations and traditional Christmas presents. Economists consider Black Friday a key gauge of consumer HostPapa Black Friday confidence and discretionary spending. Lower than expected spending on this day could signal a sluggish economy, particularly if the slowdown is sustained into the holidays. In 2021, UK shoppers spent 9.94 billion dollars online over the Black Friday and Cyber Monday weekend, which was a slight drop from the previous year. This was partly due to a number of shoppers opting to stay at home rather than face the crowds at physical retail stores. Most online retailers offered site-wide discounts to lure consumers. This was most common among fashion and home goods retailers, but it was also seen at many consumer electronics sites as well. While ecommerce sales were down on Black Friday 2021, they did return to growth in the following days. The total for the holiday season reached $53.2 billion, up slightly from last year but still far short of a record high set in 2020. Shoppers in the UK favored Amazon over other online retailers during the holiday season, with 64% saying they bought from the ecommerce giant on Black Friday. Other popular retailers included Argos and eBay. Interestingly, Gen-Z shoppers were the most active buyers on this shopping holiday, with 55% using Black Friday discounts to treat themselves and 60% buying gifts for family members. Toys were the most popular items purchased, with Hot Wheels, Paw Patrol and Nerf all posting double-digit increases in sales compared to pre-pandemic levels. The average order value on Black Friday was 9% higher than usual.
