What Will Happen on Black Friday in 2022？
Black Friday has solidified its position as a key event for both merchants and consumers. In a post-pandemic world, it remains to be seen how it will fare this year. Let's take a closer look.
A survey conducted by UserTesting and OnePoll revealed that nearly one-third of consumers in the U.S. expect to spend more on Black Friday this year compared to previous years. The study also showed that 63% of shoppers in the U.S. consider in-store Black Friday shopping as a tradition and 42% believe that offline shopping is now more important than it was before the pandemic.
The National Retail Federation (NRF) forecasts continuing a trend that began over the past few years, major retailers kicked off the holiday shopping season early by hosting special buying events in October rather than waiting for Black Friday. This may encourage early spending, but deals and promotions are expected to continue throughout November to December. While most consumers will still do the majority of their holiday shopping during this later period, extending the season provides more time for shopping and the potential for increased overall spending.
According to a survey conducted by the NRF on factors influencing Black Friday purchases, approximately 49% of consumers prioritize free shipping, 36% pay more attention to promotions or limited-time sales, 21% value the ease of use of websites or apps, and 20% prefer the Buy Online, Pick Up In Store (BOPIS) option.
Although inflation has lasted for a few months, it is expected that retailers will be able to safely navigate the holiday season, with supply chain pressures easing at the beginning of the year. A KPMG survey of retail executives found that 80% of executives surveyed last year were somewhat or very concerned about a holiday stock shortage in 2021. However, only 11% anticipated a severe shortage this year, while more than half (59%) only expected minor shortages.
It can be seen that the retail industry has a positive view of the turnover of holiday inventory this year. Nancy Vanden Houten, lead US economist at Oxford Economics, said in a research report by TKer, "As shipping bottlenecks are removed, input shortages diminish, and Americans return to the job market, we should see better supply side news."
But in any case, brands should be prepared and plan for the worst. Be sure to give yourself enough wiggle room to deal with shipping delays and have a backup plan in case consumers encounter delays in receiving their products, ensuring a competitive edge in the market.
