The day following the American Thanksgiving holiday is known as “Black Friday,” and for many workers, that day has historically been a holiday as well. It is generally a day chock full of exclusive sales and deep discounts and is regarded as the start of the Christmas shopping season. Large discounts are available in stores on toys, gadgets, and other presents.
Black Friday sales are sometimes regarded as a barometer for the nation’s general economic health and a tool for economists to assess the confidence of the typical American when it comes to discretionary spending. Lower Black Friday 2022 sales numbers are seen as a sign of slower growth by those who subscribe to the Keynesian theory that consumer spending drives economic activity.
Black Friday and Its Importance
Some analysts and investors consider Black Friday sales data as a proxy for the overall health of the retail industry. Others mock the notion that Black Friday may be used to anticipate the fourth quarter of the stock markets as a whole. They claim that all it accomplishes is very fleeting gains or losses.
The extra days off for Thanksgiving and Christmas generally have an impact on the stock market. The day before a holiday or a long weekend, also known as the holiday effect or the weekend effect, tends to see increased trading activity and higher returns as many traders try to profit from these seasonal upswings.
Pros of black Fridays 2022
- Increased traffic and sales – People are shopping for Christmas as well as for deals, and Black Friday and Cyber Monday concentrate a lot of traffic and transactions into a little window. One of the finest days of the year for e-commerce sales is today. Retailers have a clear chance to take advantage of consumer demand and increase traffic to their websites.
- An opportunity to clear stocks – On Black Friday 2022 many retailers had an opportunity to clear old stock to replace the new stock in time for Christmas. It applies to both fashion retailers and electronic retailers which offer discounts on items like TVs and laptops.
- Customer acquisition – The service of acquiring new clients might be expensive, but Black Friday gives merchants a chance to do so during a crucial period of the year. A solid post-purchase email plan can help you drive repeat business during the Christmas season and beyond if you can attract clients around Black Friday and keep them satisfied. Discounting around Black Friday is OK if clients can be kept over the long term and later purchase at full price.
- Incremental sales – Around Black Friday weekend, there is a genuine purpose to buy among consumers, which may result in additional sales. This means that buyers visit websites in search of deals but end up making full-price purchases since their pockets are empty of cash. The average shopping cart abandonment rate for businesses is about 81%, but over the Black Friday weekend, it drops significantly.
- Easier fulfillment – The fact that it shifts sales to merchants throughout the holiday shopping season and that orders may be processed and dispatched far in advance of Christmas is particularly advantageous.
Black Friday is a terrific day to draw customers to the site for sales items, but it’s also a big day for non-sale things because customers come to see whether the item they liked has been discounted and then purchase it.