It wasn’t a great Black Friday for merchants but analysts say the economy finally might be showing some improvement.
Just hours after the Thanksgiving leftovers were packed away, shoppers hit the streets in search for the best Black Friday deals. And while expectations weren’t out of this world, shoppers proved one thing: The American consumer is gaining strength as the economy improves.
Sarah Quinlan, senior vice president of Market Insights for MasterCard Advisors, said while shopping on Thanksgiving was a bit more muted than last year, as big-name retailers like TJ Maxx, REI, and others closed their doors to give their employees time with their families, it was still a good turnout overall.
The Consumer Federation of America said about 38% of Americans planned to reduce their overall spend this holiday season, while 10% plan to spend more. Meanwhile, spending overall is expected to rise 2.5% to 3% for the overall holiday season.
While figures from the Thanksgiving weekend won’t be finalized until next week, Quinlan said the initial trends suggest electronics are expected to be the biggest laggard since there’s no breakout product that would be likely to drive the consumer rush. Meanwhile, she said apparel is seen as the biggest winner.
Quinlan added department stores are also likely to see a drop off as shoppers increasingly turn to online sales to check off items on their holiday shopping lists. She explained part of the reason is because consumers are more choosy about where they spend their money – so, although they buy items department stores tend to sell, they’re not necessarily shopping at those particular outlets.