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Fewer Americans shopped during Thanksgiving weekend this year, a sign that consumers remain selective about spending.
An estimated 197 million people shopped from Thanksgiving to Cyber Monday, according an estimate from the National Retail Federation and Prosper Insights & Analytics. This year’s figure, which includes both in-store and online shoppers, is 1.7 percent lower than last year’s record of 200.4 million.
However, there were promising signs for brick-and-mortar retailers: An estimated 126 million shopped in-person throughout the weekend, 3.8 percent higher than last year. The tally of online shoppers declined 7.4 percent to 124.3 million. The NRF, which represents US retailers, said the number of shoppers, while down from a year earlier, still surpassed its initial expectations.
“Consumers have become more thoughtful and deliberate in their spending patterns,” Matthew Shay, NRF’s chief executive officer, said on a Tuesday call with reporters. They’re prioritizing gifts and holiday items this year and doing shopping in-person for the experience, he added.
Thanksgiving weekend, which includes Black Friday and Cyber Monday, is one of the biggest shopping periods of the year for US consumers. But years of high inflation and interest rates have made consumers choosy — they’re increasingly prioritizing essentials and only buying products on sale while delaying bigger purchases, including those that need financing.
In response, retailers are betting on deals and exclusive products. Best Buy Co. and Home Depot Inc. turned to doorbuster events with big, limited-time discounts. Target Corp. bet on Taylor Swift products and other items exclusive to the retailer, while Walmart Inc. offered more than double online discounts for Black Friday.
See also: Shoppers Spent $13.3 Billion on Cyber Monday, Up 7.3 percent Over 2023
Holiday shopping habits have shifted coming out of the pandemic, when consumers spent more on goods than services. That trend is now reverting back, while many consumers make holiday purchases earlier as they look for the best deals. Online shopping continues to rise, while in-store doorbusters have declined.
By Jaewon Kang
Learn more:
Black Friday Sales: A Solid Holiday Kickoff, With Warning Signs for Retailers
Early promotions and consumer resistance to a rise in prices contributed to healthy sales growth over the holiday weekend. But consumers’ growing expectations for discounts could spell trouble next year.
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