NATIONAL NEWS

Stores kick off Black Friday but pandemic woes linger

Nov 26, 2021, 5:42 AM
FILE: Shoppers walk through the Fashion Place Mall looking for 'Black Friday" deals on Nov. 25, 201...
FILE: Shoppers walk through the Fashion Place Mall looking for 'Black Friday" deals on Nov. 25, 2016 in Salt Lake City, Utah. The day after Thanksgiving, called Black Friday, is typically the biggest shopping day of the year in the United States. (Photo by George Frey/Getty Images)
(Photo by George Frey/Getty Images)

NEW YORK (AP) — Retailers are expected to usher in the unofficial start to the holiday shopping season Friday with bigger crowds than last year in a closer step toward normalcy. But the fallout from the pandemic continues to weigh on businesses and shoppers’ minds.

Buoyed by solid hiring, healthy pay gains and substantial savings, customers are returning to stores and splurging on all types of items. But the spike has also resulted in limited selection across the board as suppliers and retailers have been caught flat-footed.

Shortages of shipping containers and truckers have helped to delay deliveries while inflation continues to creep. The combination of not finding the right item at the right price — in addition to a labor shortage that makes it more difficult for businesses to respond to customer needs — could make for a less festive mood.

Shoppers are expected to pay on average of between 5% to 17% more for toys, clothing, appliances, TVs and others purchases on Black Friday this year compared with last year, according to Aurelien Duthoit, senior sector advisor at Allianz Research. TVs will see the highest price hike on average, up 17% from a year ago, according to the research firm. That’s because whatever discounts available will be applied to goods that are already expensive.

“I think it is going to be a messy holiday season,” said Neil Saunders, managing director at GlobalData Retail. ”It will be a bit frustrating for retailers, consumers and the workers. We are going to see long lines. We are going to see messier stores. We are going to see delays as you collect online orders.”

For years, Black Friday has been losing importance. Since 2011, stores jumpstarted the holiday shopping season by opening their doors on Thanksgiving to compete with Amazon and other rising online threats. But the shift merely cannibalized Black Friday sales. The shopping bonanza was further diluted when stores started marketing Black Friday sales for the full week and then later for the month.

The pandemic further diminished the importance of the Black Friday event, though some experts still believe it will again be the busiest day of the year. Last year, retailers started to offer the big holiday sales earlier in October in an effort to spread out shopping for safety reasons and to smooth out online shipping peaks. They also got rid of the Thanksgiving Day in-store shopping event and pushed all their discounts online. This year, retailers are embracing a similar strategy, though they are now pushing holiday discounts in stores as well.

Despite all the challenges, experts believe that sales for the Thanksgiving week and overall season will be strong.

U.S. retail sales, excluding auto and gas, from this past Monday through Sunday are expected to increase 10% from last year and 12.2% from the 2019 holiday season, according to Mastercard SpendingPulse, which measures overall retail sales across all payment types including cash and check.

Online sales are forecast to increase 7.1% for that week, a slowdown from the massive 46.4% gain in the same period a year ago when shoppers collectively pivoted to the internet instead of shopping in person, according to Mastercard. For the overall holiday season, online sales should increase 10% from a year ago, compared with a 33% increase last year, according to Adobe Digital Economy Index.

Sales on Black Friday are expected to surge 20% from a year ago as store traffic comes back.

For the November and December period, the National Retail Federation, the nation’s largest retail trade group, predicts that sales will increase between 8.5% and 10.5%. Holiday sales increased 8.2% in 2020 when shoppers, locked down during the early part of the pandemic, spent their money on pajamas and home goods.

KSL 5 TV Live

Top Stories

National News

Authorities stand guard by a fence outside the Supreme Court following Supreme Court's decision to ...
DÁNICA COTO and CARA ANNA Associated Press

US abortion ruling sparks global debate, polarizes activists

The end of constitutional protections for abortions in the United States has pemboldened abortion opponents around the world, while advocates of abortion rights worry the Supreme Court ruling could threaten recent moves toward legalization in their countries.
1 day ago
NASA's first spacecraft designed to study a metallic asteroid won't be launching this year as plann...
Ashley Strickland, CNN

NASA’s Psyche mission to an unexplored metal world comes to a halt

NASA's first spacecraft designed to study a metallic asteroid won't be launching this year as planned, according to an announcement made by the agency on Friday.
1 day ago
Meeting of Ukrainian President Volodymyr Zelenskyy with representatives of foreign media. (Ukrainia...
Associated Press

NOT REAL NEWS: A look at what didn’t happen this week

A roundup of some of the most popular but completely untrue stories and visuals of the week. None of these are legit, even though they were shared widely on social media. The Associated Press checked them out. Here are the facts
1 day ago
FILE PHOTO (Photo by Jacob King - WPA Pool/Getty Images)...
MIKE STOBBE, AP Medical Writer

Moderna COVID-19 shots now an option for older kids in US

There is now a second COVID-19 option for kids ages 6 to 17 in the U.S.
1 day ago
Abortion-rights and Anti-Abortion rights activists fill first street in front of the U.S. Supreme C...
Cindy St. Clair

How abortion laws will change in states surrounding Utah

The Supreme Court opinion in Dobbs v. Jackson Women’s Health allows states to reshape abortion laws. Utah’s trigger law will restrict abortion in most cases. Here’s a look at what laws will look like in surrounding intermountain states.
1 day ago
A United Airlines plane lands at San Francisco International Airport on March 07, 2022 in San Franc...
DAVID KOENIG, AP Airlines Writer

Pilots in line for big raises amid global travel disruptions

The largest pilots union has approved a contract that would boost the pay of pilots at United Airlines by more than 14% over the next 18 months, potentially clearing the way for similar wage hikes throughout the industry.
1 day ago

Sponsored Articles

hand holding 3d rendering mobile connect with security camera for security solutions...
Les Olson

Wondering what security solutions are right for you? Find out more about how to protect your surroundings

Physical security helps everyone. Keep your employees, clients, and customers safe with security solutions that protect your workplace.
Many rattan pendant lights, hay hang from the ceiling.Traditional and simple lighting....
Lighting Design

The Best Ways to Style Rattan Pendant Lighting in Your Home

Rattan pendant lights create a rustic and breezy feel, and are an easy way to incorporate this hot trend into your home decor.
Earth day 2022...
1-800-GOT-JUNK?

How Are You Celebrating Earth Day 2022? | 4 Simple Ways to Celebrate Earth Day and Protect the Environment

Earth Day is a great time to reflect on how we can be more environmentally conscious. Here are some tips for celebrating Earth Day.
Get Money Online...

More Ways to Get Money Online Right Now in Your Spare Time

Here are 4 easy ways that you can get more money online if you have some free time and want to make a little extra on the side.
Lighting trends 2022...

Lighting Trends 2022 | 5 Beautiful Home Lighting Trends You Can Expect to See this Year and Beyond

This is where you can see the latest lighting trends for 2022 straight from the Lightovation Show at the Dallas World Trade Center.
What Can't You Throw Away in the Trash...

What Can’t You Throw Away in the Trash? | 5 Things You Shouldn’t Throw in to Your Trash Can

What can't you throw away in the trash? Believe it or not, there are actually many items that shouldn't be thrown straight into the trash.
Stores kick off Black Friday but pandemic woes linger