Weekend Spending Declines, National Retail Federation Says

According to the National Retail Federation, fewer holiday shoppers purchased gifts during the five-day period from Black Friday to Cyber ​​Monday and those who spent less as the discounts began earlier this year.

The retail group said about 186.4 million shoppers purchased Thanksgiving Christmas gifts, food or decorations on Cyber ​​Monday. That’s less than the 189.6 million shoppers who purchased items during this period last year, but more than the 165.8 million shoppers in 2018.

Over the weekend, average spending on gifts, decorations and food fell by $ 311.75, or about $ 50 from a year ago, the NRF said.

On a call with reporters, NRF chief executive and chairman Matt Shay said shoppers focused less on shopping over the weekend as many started shopping for items in October. Still, he said Americans are still excited to celebrate the season and have indicated they have half of their purchases to complete.

“We’ve seen pretty much whatever the segment, whatever the brand, a constant theme is that consumers have gotten a head start on holiday shopping,” Shay said.

This year, online shopping played a bigger role for retailers during the Black Friday weekend. Shay said about 57% of vacation shoppers said they plan to shop more online due to the pandemic. These new habits affect consumers of all ages and from all walks of life, he said.

“As coronavirus cases have increased across the country in recent weeks, we continue to see consumers prioritizing their personal health and safety as well as the public health and the health of the communities in which they live and work, ”Shay said. “They continue to adjust their online shopping behavior to avoid the crowds.”

Buyers might also be looking to make their money count. Online shoppers during Small Business Saturdays increased 17% to around 68 million people. A growing number of Americans have expressed a desire to support local stores and black entrepreneurs for a year when the pandemic has hit small business and the George Floyd protests have highlighted blacks’ unequal access to opportunity. It also fueled spending on Etsy, a website that offers unique, handmade, and personalized gifts made by small businesses.

The number of shoppers who purchased items online only over the weekend rose 44% to 95.7 million shoppers, the group said.

Even with the big shift to online shopping this year, Shay said he expects crowds to return to stores for Black Friday in the future. He said Americans would like to resume traditions after the Covid-19 vaccine.

“I wouldn’t be surprised if next year’s Black Friday was the biggest in history,” he said. “I just think there’s going to be a huge pent-up demand for us all to go out, to socialize, to be together and to experience some of the things that we are missing right now.”

The heaviest consumers over the five-day period were between 35 and 44, according to analysis by NRF and Prosper Insights & Analytics. This group spent around $ 380, almost $ 70 more than the average buyer.

Buyers bought a mix of freebies, but the main merchandise was clothing at 52%, said Phil Rist, executive vice president of strategy for the company. Next come toys at 32% and books and other media at 29%. Gift cards were also at 29% and electronics at 27%.

He said free shipping motivated hesitant buyers to make the purchase more than any other factor. Rist said limited-time sales and promotions, the ease of use of apps and websites, and the reviews of other customers have also influenced consumers.

The NRF expects 2020 vacation sales to increase as Americans spend less on travel and restaurants and spend that money on giveaways. He predicted spending would grow 3.6% to 5.2% year over year, or between $ 755.3 billion and $ 766.7 billion.

On average, vacation sales have grown 3.5% over the past five years, according to the NRF. Sales forecasts exclude car dealerships, gas stations and restaurants. They rose 4% to $ 729.1 billion last year, NRF said.

Yet even the industry group’s forecast schedule for this year illustrates the uncertainty over how the pandemic and recession will influence consumer behavior. The NRF generally shares its sales forecast for the holiday season in early October. This year, he delayed those prospects until the end of November.