Shoppers flocked to stores around the world on Black Friday on Friday in search of discounted electronics, clothing and home goods at the start of the crucial holiday shopping season for major retailers.
Brokerage firm TD Coin lowered its estimate for holiday spending in the United States to growth of 2% to 3%, compared to expectations for an increase of 4% to 5%, as it expected stable traffic on Black Friday.
With many consumers under pressure from persistent inflation and rising interest rates, U.S. holiday spending is expected to rise at the slowest pace in five years. Most major retailers have reduced their seasonal hiring.
A record 130.7 million people are expected to shop in physical and online stores in the United States on Black Friday this year, according to National Retail Federation estimates. The event is famous for crowds lining up at supermarkets in the early hours of the morning to buy televisions and home appliances at discounted prices.
American shoppers plan to spend an average of $875 on holiday shopping, which is $42 more than last year, according to a survey of 8,424 adults conducted in early November by the National Retail Federation, a U.S. retail trade group.
On average, shoppers in France planned to spend 295 euros ($322), according to PricewaterhouseCoopers, and 65% of purchases were expected to be made online.
In the UK, transaction volumes were up just 1.4% in the week through Wednesday compared to a year ago, according to Barclays, the bank that records nearly half of the country’s credit and debit card transactions.
The rise of online shopping has reduced the importance of Black Friday as a one-day event. Retailers from Macy’s to Amazon are launching deals as early as October, often offering additional discounts as Christmas approaches, Macy’s CEO Jeff Gennette told investors this month.
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