Retailers are disappointed that this year’s most significant shopping day did not live up to their expectations.
Business publications have reported declining foot traffic at malls around the United States. The Christmas buying joy may have been hampered by rising prices and low consumer confidence.
People were seen waiting inside establishments at Times Square in New York City as workers waited for customers who had not yet come despite the overcast weather and light rain.
Lines weren’t forming outside any businesses at the American Dream mall in East Rutherford, New Jersey. An employee from Toys”R” Us was spotted distributing fliers advertising the store’s doorbuster deals for Black Friday across the shopping center.
At around 10:30 a.m., the busiest stores at Crossgates Mall in Albany, New York, were those selling extremely low-priced goods and high-end buzzy businesses, while the middle-priced stores were deserted.
The queue was so lengthy at Old Navy, which is owned by Gap Inc. and was giving 60% off most products, that several customers left the store as soon as they arrived. Huge crowds flocked to American Eagle Outfitters Inc.’s Aerie, and a popular intimates brand among Generation Z customers, and Lululemon Inc., a prominent athleisure retailer that only offered a few racks of reduced products.
Meanwhile, there were hardly any people in the lineups at popular retailers like Banana Republic, Macy’s, and Urban Outfitters.
The National Retail Federation predicts a six to eight percent increase in retail sales for the whole year. That’s a significant decrease from the 13.5% growth in 2018 and the 9.3% growth expected in 2020. Taking inflation into account, it’s possible that sales have decreased. Compared to a year earlier, the CPI has increased by 7.7 percent.
According to a poll conducted in November by the University of Michigan, consumer sentiment significantly dropped that month. The consumer mood index fell 5% from October, wiping off about a third of the improvement from the trough reached in June. A 10.4 percentage point decline was recorded in the indicator of the present state of affairs.
The discretionary spending industry had no daily changes. It has lost 33.53 percent of its value over the past year, making it the second-worst performing of the S&P 500’s eleven sectors. The weakest is the communication services industry, dominated by technology and entertainment.
Black Friday flopped wherever it was celebrated, including the United Kingdom. The Guardian claimed that “Black Friday got off to a subdued start in the UK,” with fewer home deliveries scheduled and no spike on the high street.
Two news agencies, Reuters and Bloomberg, have used the word “muted” to characterize consumer spending in the United States.