Black Friday Consumer Behaviour and the Changing Dynamics of Shopper Trends

Black Friday, the annual shopping event that takes place after Thanksgiving, has traditionally been a significant day for both shoppers and retailers in the United States. However, recent changes in consumer behaviour, influenced by factors such as inflation and the lingering effects of the pandemic, have impacted this shopping event. In this article, we will explore the evolving consumer behaviour surrounding Black Friday and discuss how retailers can adapt to these changes.

The Rise and Fall of Black Friday Deals

Black Friday originated as a day for stores to promote shopping deals after Thanksgiving, marking the official start of the Christmas shopping season in the US. In the early 2000s, Black Friday sales surged as consumers flocked to brick-and-mortar stores to take advantage of limited deals and significant discounts. However, the rise of online shopping and the negative sentiment surrounding Black Friday deals led to a shift in consumer behaviour.

As online shopping gained popularity, Cyber Monday was coined as the day for online shopping deals, taking place on the Monday following Black Friday. Consumers turned to digital channels to shop for exclusive deals, driven by the convenience and the avoidance of crowded stores. This shift coincided with the growth of e-commerce, and by 2012, Black Friday mentions on social media peaked at 1.5 million.

However, consumer frustration over not getting the advertised deals and a growing awareness of consumerism led to a decline in the popularity of Black Friday. Despite these challenges, Black Friday remains a significant holiday shopping event. In 2022, online spending during Black Friday grew by 2.3% compared to the previous year, reaching $9.12 billion. Retailers expect a similar or better performance this year, with online channels driving the bulk of sales.

Predictions for 2024 Black Friday Consumer Behaviour

Based on data from the past year, several predictions can be made about consumer behaviour during Black Friday:

1. Consumers will continue to shop online during Black Friday: Online shopping during Black Friday has been on the rise, with significant increases in online retail sales reported by e-commerce platform providers like Adobe Analytics, Salesforce Inc., and Shopify. Consumers are increasingly turning to online channels for convenience and better price transparency.
2. Buy Now Pay Later (BNPL) deals will drive conversion: With inflationary pressures and economic uncertainties, consumers are looking for ways to extend their dollars. BNPL schemes have gained popularity, with a significant increase in BNPL orders during Black Friday 2022. Retailers can leverage this trend by offering BNPL options during checkout.
3. Shoppers will still go to physical stores but stay out of long lines: While online shopping has gained prominence, in-store traffic during Black Friday has also seen an increase. Retailers should create a seamless shopping experience that caters to both in-store and online shoppers, emphasizing that they can find the best deals regardless of the channel.
4. Consumers will continue to shop early: Many consumers start their holiday shopping early to take advantage of early Black Friday deals and avoid the rush. Retailers can offer promotions early in the shopping season to attract these early shoppers.
5. More shoppers will use their mobile phones to make purchases: Mobile shopping has become increasingly popular, with a significant portion of online retail sales during Thanksgiving and Black Friday being made through mobile devices. Retailers should optimize their websites for mobile devices and provide a seamless mobile shopping experience.
6. Customers who shop during Black Friday will expect bigger discounts: Black Friday shoppers expect significant discounts compared to regular sale seasons. Retailers should offer discounts in the 15% to 25% range or higher to meet customer expectations.
7. Young people will spend the most on expensive, high-quality items: Younger consumers remain optimistic about their discretionary spending and prioritize quality over quantity. Retailers can create discounts for top-quality items that appeal to this demographic.
8. Paid advertising and social media ads are key: Online ads and social media ads are effective in attracting shoppers to Black Friday deals. Retailers should create clear and simple purchase paths embedded in their marketing ads to provide a quick and seamless shopping experience.

Black Friday remains a significant event in the retail calendar, but it is evolving in response to changing consumer behaviours, economic pressures, and technological advancements. Retailers who adapt to these changes by offering compelling deals, convenient payment options, and a seamless online and in-store shopping experience are more likely to meet the expectations of today's shoppers and build brand loyalty.