- The average American consumer is expected to spend $441 over the Black Friday weekend — a 16 percent increase from $381 in 2021.
- Consumers are spending more discerningly to maximize their value-for-money.
- Financial concerns this year have resulted in a higher level of planning ahead to secure the best deals during the Black Friday sales period.
New research shows that one-in-five (21%) of U.S. consumers will do most of their holiday shopping this Black Friday, with 35 percent increasing their spend from 2021 levels. Even as inflation threatens customer spending, this proves that a good deal can persuade shoppers into opening their wallets.
Most Shoppers Plan to Spend More This Year
The research surveyed 3,006 nationally representative U.S. consumers and was conducted between August 11 and August 15, 2022 by Emarsys. According to the study, the average American consumer is expected to spend $441 over the Black Friday weekend — a 16 percent increase from $381 in 2021.
In contrast, less than a quarter of customers (24%) plan to decrease their spending this Black Friday. For those that will, rising inflation (61%), the global cost-of-living crisis (56%), and fear of recession (36%) were quoted as the most common reasons for cutting back spending.
Continued Supply Chain Woes
For those consumers who are planning to increase their Black Friday spending this year, this means that retailers need to ensure they have enough products on their shelves. Out-of-stock and low inventory messages are plaguing brands everywhere, and shoppers will not wait around until the merchandise comes back. To prevent your customers from going elsewhere, you need to prepare and order inventory well in advance, check with other suppliers to see if they have the same or similar products in stock, or order your materials from USA-made companies to ensure they arrive on time.
Consumers Are Looking For These Deals
As we enter the countdown to the big day, increased spending may come as a surprise given global economic concerns. However, Emarsys’ research indicates that consumers are spending more discerningly to maximize their value-for-money.
- Seeking the biggest discounts (41%)
- Taking advantage of free returns (37%)
- Grabbing deals early (28%)
These are all key tactics for consumers this Black Friday. In order for retailers to capitalize on these shoppers, it is crucial to incorporate at least two of the above key tactics into their holiday deals.
This strategic approach extends to the channels that consumers will use to make purchases. While online purchases (62%) naturally lead the way, 47 percent of customers also plan to shop in-store. COVID has become a consideration of the past for many, as only 11 percent will avoid brick-and-mortar stores. This suggests that digital and physical retail are increasingly seen as two sides of the same coin, with consumers making the most of the deals by looking in both locations.
Black Friday Success: Understanding Your Customers’ Needs
According to Sara Richter, CMO of Emarsys, the global pandemic and associated lockdowns did not just introduce millions of consumers to ecommerce, but also strategic spending. Shoppers have been forced to navigate through tough scenarios with limited funds. Financial concerns this year have resulted in a higher level of planning ahead to secure the best deals during the Black Friday sales period.
“This research sends a clear message to brands that they need to prepare for Black Friday earlier than ever and build a strategy that cuts through the noise. Given the volume of competition this holiday season, personalized marketing tactics are essential. For the best possible Black Friday, brands will understand the behaviors, preferences, and concerns of consumers as individuals, showing an understanding of exactly what, and how, they want to buy,” Richter said.