With U.S. inventories tight, ‘Black Friday’ drags through November -Breaking
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© Reuters. FILEPHOTO: Black Friday shoppers line up in Rehoboth Beach Delaware on November 27th 2020. REUTERS/Joshua Roberts/File PhotoRicha Naidu, Arriana McLymore
CHICAGO (Reuters] – In order to overcome a lack of year-end stockpiles and a shortage in workers, retailers turned “Black Friday” into a month-long event.
Walmart (NYSE:), world’s largest retailer said Monday it already had “Black Friday” discounts, like $30 off AirPods, and KidKraft dollhouses. Walmart will close its stores for Thanksgiving this year, and it said that Friday would offer the same discount in the stores.
Big-box competitor Target On Sunday, (NYSE:), began its Black Friday sale, including discounts up to 30% on Samsung (KS) and TCL flat-screen televisions and half off headphones Target announced Monday that all 1,900 of its stores will remain closed for Thanksgiving from now on.
The U.S. Holiday Shopping Season began with doorbuster discounts. This led to people lining up in blocks at brick-and mortar stores on Black Friday (the day after Thanksgiving). Online sales have outpaced brick-and mortar sales in recent years.
Online holiday deals were promoted by retailers as soon as September this year. This was because they could not import new products from Asia to the United States for weeks prior to Christmas. However, the discounts are very modest. The price cut retailers are likely to offer this Friday is 5% to 25%, which is slightly more than the 10%-to-10% discounts that they gave in October. According to Adobe’s Digital Economy Index (NASDAQ:),
Black Friday is a time when shoppers are increasingly shopping online, and retailers have been reducing their Black Friday hours. “Are discounts going to be as prevalent and as deep as they normally have been in the last few years?” asked Marshal Cohen, chief industry analyst at NPD Group. “No, not if the demand for product is high and the supply is low – there’s no reason to promote discounts.”
“Stores are trying to berate the public into thinking ‘get it now or it might be gone,” said 70-year-old artist Maggie Smith from Tucson, Arizona.
A Reuters/IPSOS survey of approximately 1,000 shoppers found that more than a fifth said they plan to buy gift online, and only 12% stated they will shop in-store. According to Adobe Digital Economy Index, online sales for Black Friday are projected to rise by between 5% and $9.5 billion.
Walmart and Target said that they will invest in faster options for customers, such as the possibility to order online merchandise.
However, retailers could face labor shortages if they have to fulfill quick-turn orders online.
Andy Halliwell is senior retail director at Publicis Sapient. He stated, “We are seeing double time for these shifts and increases to the pay. But then that’s going be painful.” This will impact the margins of retailers.
Simon Property Group (NYSE;) and Brookfield Asset Management are the owners of JC Penney. They plan to employ 3,000 supply chain workers at distribution centers as well as 25,000 seasonal employees. For select associates working in supply chains, the retailer will offer $2,000 retention bonus.
Macy’s , which plans to hire 71,000 seasonal workers, said that nearly one-third of those employees will work in fulfillment centers across the country, and Kohl’s in July said it would give maximum bonuses of $400 to hourly store and supply chain associates who stuck around for the holiday season.
Some retail outlets stated they prepared for brick-and–mortar stores making a comeback and that they had enough stock.
“We’re seeing our customers return to in-store shopping,” William White, Walmart’s chief marketing officer in the United States, told Reuters. White stated that Walmart had increased its toys assortment more than twofold.
Marc Ivan is a student at the University of Pennsylvania in Philadelphia. He said that he doesn’t plan to stop shopping at stores, but that he would rather shop online.
“I’ll go out Black Friday just for casual shopping, and to hang out with my friends.”
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