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140 Million To Shop Today

Ready or not Black Friday is here. Be prepared for high traffic numbers, both on the road and in the e-Commerce space as an estimated 140 million consumers will be shopping in some capacity, Bloomberg reported.

That's not necessarily more people than previous years, but consumers are predicted to spend more on this gifts this year. Statistics from the National Retail Federation is forecasting a 4.1 percent increase in November and December sales. That's the biggest industry in the industry since 2011 when sales grew 4.8 percent during those months, Bloomberg said.

The reasons cited for higher consumer spending include: falling unemployment, rising wages and lower gas prices. More money in American's wallets means more money to put into stores. Consumers are finally feeling more confident to spend post-recession. Weather may hold some back, like on the east cost where a massive storm is expected to keep people home, but that may encourage more e-Commerce sales. Meanwhile, brick-and-mortar retailers are going to be working to undercut the competition and convince shoppers they've got the hottest deals.

“We’re expecting a robust spending weekend,” Rod Sides, who tracks retail for consulting firm Deloitte LLP, told Bloomberg. “Basket size will go up — I do think folks are intending to spend more.”

The retail holiday also overshadowed some of the Thanksgiving holiday more this year than last as more retailers stayed open or opening earlier on Thanksgiving Day. Black Friday has become a four-to-five day event for some retailers. Most major U.S. retailers were open on some of Thanksgiving and other opened earlier than ever. Nordstrom and Costco were two retailers who closed on Thanksgiving Day.

“You have to be a player in Black Friday,” Bob Drbul, an analyst for Nomura Holdings Inc. in New York, told Bloomberg. Black Friday weekend accounts for about 10 percent of consumer spending during the holiday season, he said, who suggested U.S. consumers are getting more confident, so stores should react. “You have to get your share of it.”

 

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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