As the holiday shopping season approaches, a recent GoDaddy survey indicates that only 19% of consumers plan to shop on Black Friday, reflecting the ongoing economic pressures from inflation and rising costs of living. This year, many shoppers are expected to be more cautious with their spending, focusing on deals and discounts to stretch their holiday budgets further.
Key Takeaways
- Almost 1 in 5(19%) of consumers intend to shop on Black Friday, a significant drop from previous years.
- 64% of consumers report that inflation will impact their holiday spending.
- Retailers are concerned that discounts may not be enough to attract shoppers.
- The National Retail Federation predicts a 3% to 4% increase in holiday spending compared to last year.
Economic Pressures Affecting Consumer Behavior
The survey by Invoice Home highlights that nearly two-thirds of U.S. consumers are feeling the pinch of inflation, influencing their holiday shopping plans. Many are opting to delay purchases or cut back on spending altogether. Key findings include:
- Inflation Impact: 64% of consumers say inflation will affect their holiday spending.
- Delayed Celebrations: 11% plan to celebrate the holidays in 2025 due to high costs.
- Spending Cuts: 25% will not travel, and 24% will opt out of gifting altogether.
Retailers' Concerns
Retailers are bracing for a challenging Black Friday, with many fearing that even significant discounts may not be enough to entice shoppers. The National Retail Federation (NRF) anticipates a modest increase in holiday sales, but spending is expected to slow due to economic uncertainty. Retailers are adjusting their strategies by:
- Early Promotions: Many have started holiday sales earlier to spread out consumer spending.
- Focus on Value: Retailers like Best Buy and Kohl’s emphasize lower-priced items to attract budget-conscious shoppers.
Shifting Shopping Trends
The holiday shopping landscape is evolving, with consumers increasingly turning to online platforms and smaller retailers. The survey indicates that:
- Online Shopping: 35% of Gen Z and 26% of millennials plan to shop at small businesses, while 19% of Gen Z and 20% of millennials prefer digital gift cards.
- Cautious Spending: Shoppers are expected to stick to lists and avoid impulse purchases, reflecting a more strategic approach to holiday shopping.
Looking Forward
As Black Friday approaches, the combination of inflation and changing consumer behavior reshapes the holiday shopping landscape. Retailers will need to adapt to these trends and focus on providing value to attract shoppers who are more budget-conscious than ever. With only 19% of consumers planning to shop on this traditionally busy day, the retail sector faces a critical challenge in meeting the needs of a cautious consumer base.
