The National Retail Federation is predicting a three to four-percent growth in revenues this year, especially with the trend of holiday shopping promotions beginning well before Black Friday. LSU Marketing professor Dan Rice believes that trend will begin to normalize a bit more…
“To the normal increase that we would see year after year which is coming down slightly from the percentages we saw after the pandemic,” said Rice.
Rice said the trend of online sales promotions continues along with shoppers focusing on both Black Friday and Cyber Monday.
The Friday after Thanksgiving is referred to as Black Friday because that’s when a majority of retailers are able to see their profit margin increase significantly and get out of the red for the year.
Rice said the trend of Cyber Monday promotions is growing considerably faster when you compare them to Black Friday brick-and-mortar store promotions.
“In fact, the predicted growth from online sales this year is growing about four times as fast as offline sales,” said Rice.
Even with the threat of a recession, Rice said people are still spending. Retailers, like Target, for example, are reporting a drop in revenue but an increase in profits. Rice said that suggests consumers are feeling the need to buy more necessities potentially and pay closer to full price for them.
“Even though the total revenue is lower the companies are actually doing better because they are having to sell less at sale prices in many cases,” said Rice.
The National Retail Federation said consumers appear to be planning on spending more this holiday season but buying less in terms of the number of items.
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