CHICAGO, Nov. 26 (US): Bargain hunters ventured into the cold weather to buy Christmas presents on Black Friday and found stores less crowded than in years past, as major US retailers opened their doors early.
An online shift, COVID concerns, and less severe cuts have dampened crowds the day after the US Thanksgiving holiday, which begins the year-end shopping season. Reuters reports that many shoppers are also opting for curbside pick-up rather than venturing inside.
Ian Korolenko, 29, a vacuum sales rep who was asked by Target to help with Black Friday.
“I also think a lot of these stores are doing Black Friday deals earlier in the week now, and a lot of them are going online now.”
CEO Jeff Jennett told Reuters in an interview that Macy’s (MN) is extending the deadline for digital delivery as Christmas approaches. The deadline is now December 22 or December 23, versus December 15 last year. If shoppers order by 10 a.m., they can deliver same-day delivery at certain stores and categories.
“You still have that last minute procrastinator that’s coming up on Christmas Eve,” Jennette said.
Francisco Martinez, 22, a delivery driver, was one of more than 100 people standing outside the Walmart Supercenter in Chicago’s Kilbourn Park neighborhood before 5 a.m., in 20-degree Fahrenheit (-7 Celsius) weather.
While people waited in the queue, a Walmart worker distributed coupons for items like Apple AirPods, watches, and Gateway laptops.
“I want to get a 65-inch Element TV — for $350 off,” Martinez, who was dressed in three layers, said, adding, “I think I’ll get it — it’s not as crowded as before.”
‘Birds That Were Online Early Are Getting Worms’
With online shopping taking off, the Black Friday crowds dwindled, especially in 2020 when people were still not immune and worried about the coronavirus.
Dresden Davis, 28, said she’s doing Black Friday shopping from her couch now because the sale isn’t “Black Friday” like they used to. “I feel like a lot of places only have 20-25% off, when Black Friday sales are more,” said Davis, a strategy and planning specialist in Odenton, Maryland.
In November and December, online sales are expected to reach a record $207 billion, up 10% from a year ago, according to the Adobe Digital Economy Index. The National Retail Federation expects online and bundled holiday sales to grow 8.5%-10.5% to between $843.4 billion and $859 billion.
Walmart (WMT.N), Best Buy (BBY.N) and Target (TGT.N) this year did not require vaccinated shoppers to wear masks, but some indoor malls have kept current mask requirements in place.
In Chicago-area stores visited by Reuters, employees and shoppers generally wore masks.
Realtor Kelsey Hope, 36, has been shopping for years at Macy’s in downtown Chicago on Black Friday, and she’s maintained that tradition this year.
“Chicago is very safe, masked, and vaccinated,” she said. “I got a booster so I’m not too concerned about it.”
Macy’s Jeanette said the store’s Black Friday traffic “exceeded our expectations in the first two hours.”
A survey by Deloitte showed that people had already spent 80%-85% of their budgets before Black Friday.
“People are looking to get back to normal,” said Rod Sides, president of US retail Deloitte. “The early birds on the Internet, the birds that entered the store, might get wormed.”
Another concern is that the ongoing supply chain crisis may prevent retailers from stocking needed items such as Hoverboard bikes, Oculus Quest 2 headphones, Nerf toys, AirPods Pro earphones, and MacBook Air laptops.
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Online and mortar retail meets right outside the store. Retailers including Target, Macy’s and Walmart have dedicated more space and workers to online pick-up stations and curbside parking.
Walmart, the world’s largest retailer, has hired 150,000 holiday workers, many of them for these jobs. Walmart gives users an hour to check out after scheduling an order redemption.
Target has added more than 18,000 “drive-up” parking spaces, more than double compared to last year. Target’s website warns of “limited qualities” and “no rain check.”
Pickup by the way was up 92% in November compared to 2019, according to the Adobe Digital Economy Index.
According to Adobe, electronics — which is in short supply due to a global chip shortage — has the highest levels of out-of-stock, followed by personal care, and home and garden.
During most of November, out-of-stock inventories were up 261% compared to 2019.
“Instead of seeing eight stacked boxes of TVs, you might see three or four stacks of TVs,” said Marshall Cohen, an analyst with NPD.
Elver Gomez, 21, came to Best Buy at 6 a.m. but found the Apple and Microsoft laptops he wanted were unavailable.
“Looks like this year is either out of stock or not at that great price,” said the student. “I won’t get what I want.”
NS