Americans are expected to take advantage of steep Black Friday discounts to buy everyday household items as higher costs have eroded discretionary budgets. According to Adobe Research, online sales of basic clothing will surge 210 percent and personal hygiene products 150 percent during the five days from Thanksgiving to Cyber Monday.
Holiday retail sales are expected to rise 4.5 percent year-over-year, but only 1.1 percent adjusted for inflation, per Visa Business and Economics Insights. Annual inflation hit 3.7 percent in September. Retailers like Walmart, Costco, and Target are investing heavily in price to drive market share.
Consumers are more aggressive in comparison shopping, using AI tools to find lowest prices. About a third of households earning under $100,000 will trade down to cheaper brands. Even households earning $150,000 plan to cut back, open credit cards, or use "buy now, pay later" services.
"Once you've finished paying off your utility bills... then you are going to go into the store to look for deep discounts," said Priya Raghubir, marketing professor at New York University. "At that stage, just stock up."
Source: New York Times Business · Summarized by HeadlinesBriefing