Black Friday Sales Hit to reach 9 Billion in 2022
Before Santa and mistletoe, one of the best times of the year for 2022, is coming. Celebrating gratefulness, creating loving memories with your family and friends, and eating delicious food, and the most exciting of them is the 'Black Friday Sales'!
Big markdowns before Christmas. Black Friday is often the biggest shopping holiday of the year, so you may wonder what it'll look like in 2022.
What Is Black Friday?
Black Friday – the day after Thanksgiving is the most eagerly awaited shopping day of the year. It is the biggest retail sales day in the United States, often regarded as the unofficial start of the holiday shopping season. It has been an integral part of the American holiday season since the early 1980s. Several business owners witness huge profits on Black Friday.
Why Is It Called Black Friday?
Black Friday - The day after Thanksgiving and the kick-off to the holiday shopping season. But where did the Black Friday name come from?
For years, many different myths circulated about Black Friday's origins. As you might expect, there's a lot of interest in this shopping day, and the over-excitement caused by it was how police in the city of Philadelphia coined the term Black Friday in the 1950s and '60s. This is because of the significant number of shoppers who caused overwhelming traffic and fights in and outside stores as people fought to pick up the biggest bargains.
Black Friday shopping has become one of America's most treasured holiday traditions, and it also spread around the world.
Meanwhile, other branded days around the holiday have arisen: Small Business Saturday, Cyber Monday, and Giving Tuesday.
Why is Black Friday so successful?
On average, in-store discounts fall around the 20 percent off range the week of Thanksgiving and rise to roughly 37 percent savings on Thanksgiving and Black Friday. Online Black Friday deals follow suit with an average 34 percent discount.
The Census Bureau of the Department of Commerce announced that the estimate of U.S. retail e-commerce sales for the third quarter of 2022, adjusted for seasonal variation but not for price changes, was $265.9 billion, an increase of 3.0 percent from the second quarter of 2022. The third quarter of 2022 e-commerce estimate increased by 10.8 percent from the third quarter of 2021, while total retail sales increased by 9.1 percent in the same period. Total retail sales for the third quarter of 2022 were estimated at $1,792.0 billion, an increase of 0.7 percent from the second quarter of 2022. E-commerce sales in the third quarter of 2022 accounted for 14.8 percent of total sales.
On a not adjusted basis, the estimate of U.S. retail e-commerce sales for the third quarter of 2022 totaled $251.7 billion, a decrease of 0.1 percent from the second quarter of 2022. The third quarter of 2022 e-commerce estimate increased by 10.8 percent from the third quarter of 2021, while total retail sales increased by 9.1 percent in the same period. E-commerce sales in the third quarter of 2022 accounted for 14.1 percent of total sales.
According to a report from Adobe Analytics, U.S. online sales for the holiday 2022 period, which runs from November 1 to December 31, is set to reach $209.7 billion this year, an increase of 2.5% year-over-year.
Adobe forecasts that the busiest day for online sales during the holiday shopping season will be Cyber Monday, where shoppers are expected to spend $11.2 billion. Black Friday online sales come in second, with $9 billion projected. Altogether, That BFCM will bring in $34.8 billion in online sales.
What to consider this year's Black Friday?
It might have been different from 2020 or last year, but that doesn't mean it will be smooth sailing all the way through. Issues like inflation may make it another rocky season for consumers.
Shoppers are more conscious now. They are looking for products that last, businesses are looking to connect with customers across more channels, climate-conscious shopping is growing on a mass scale, and brand loyalty is up for grabs, according to Shopify's global research survey.
- 73% of businesses worldwide are planning for a big Black Friday Cyber Monday weekend this year, despite economic uncertainty
- 76% of shoppers globally are looking to spend on quality items that last
- 40% of consumers will pay more for climate-conscious products
The eCommerce industry is constantly changing, and this year has been no different. A consistently evolving economic environment means a new shape for commerce—from high volume and low prices to value that lasts. As we are getting ready for 2022 Black Friday and Cyber Monday weekend, Shopify surveyed more than 24,000 consumers and 9,000 small and medium businesses worldwide to learn how cost-of-living spikes are affecting spending habits and retailers worldwide
It is loud and clear. Businesses and shoppers plan to be more considered, conscious and connected this holiday shopping season. Intentional spending is expected.
According to Harley Finkelstein, President of Shopify. "Black Friday Cyber Monday is more than just a weekend–it's a season. It is without a doubt the biggest commerce event of the year. I've said this before: modern retailers need to sell wherever their customers spend time–online, offline, and everywhere in between,". "If you've built a community and a direct relationship with your customers, you'll also secure their loyalty. Consumers are voting with their wallets to support the brands they love that reflect their values."
How to prepare your business for Black Friday?
Whether you're concerned about the economic environment, most consumers have already started planning and creating their list for Thanksgiving 2022.
At least around 20% or more of annual sales for many retailers are expected to occur between Black Friday and Christmas. Black Friday alone has proved to be beneficial for many business owners.
Since shoppers spent nearly $20 billion during Black Friday and Cyber Monday last year, online stores should prioritize generating buzz and selling more during these lucrative shopping holidays.
Here are the lists of the best Black Friday deals in 2022 from the most popular retailers in the USA:
- Bed Bath & Beyond
- Best Buy
- JC Penny
- Home Depot
Best strategy for this Black Friday
Dynamic pricing is a winning formula, the constant price fluctuations in the market. Keeping your e-commerce competitive involves detecting these price changes in the market and adapting to them as much as possible. Therefore, the role of users as price trackers and comparators becomes particularly relevant.
Did you know the PriceMole app offers email notifications and various pages that allow you to view in-depth analytics and price tracking insights to see pricing anomalies and trends of over and under-price and availability?
Dynamic pricing benefits online stores by:
- Increased Profit & Sales
- Adjusting to the Competition
- Improves Productivity & Better Inventory Management
- Understanding Consumer Behaviour
It can adapt to consumer demand by keeping your main goals.
Maximize sales and profit
Dynamic pricing helps businesses generate higher profits due to increased sales volume. Implementing Dynamic Pricing can be used to increase either profit or sales. For example, they are getting on top of raising prices at the right time while products are in demand. When other providers on the market sell out or trending items hit the market, raising prices automatically boosts profits. Products are in demand, so shoppers will continue to buy even at a price increase. Automation ensures you take advantage of these critical opportunities by raising and lowering your prices at the RIGHT time. Implementing Dynamic Pricing can be used to increase either profit or sales.
With optimization strategies, you can find the best price for the products you can sell in greater quantities. They also help you get rid of the products clogging up your catalog.
Accroding to our latest study, results show an average increase of 7% to 15% profit using PriceMole SmartPrice (our machine learning-powered dynamic pricing strategy) and other automated price strategies used by our Partners.
Most consumers have already started planning and creating their list for Thanksgiving 2022. How about you? Are you prepared to capture their attention? If not, begin now, or you might lose them to your competitors. Use the best and ultimate strategy to turn these Black Friday sales in 2022 into significant profits for your retail or online business.
The PriceMole app is built to help merchants adjust their prices automatically, especially on the biggest shopping holiday of the year. Optimizing according to the business objectives.
Contact us now to learn more about implementing a customized pricing strategy for your business, or check out our Website, Shopify, BigCommerce, Facebook, Twitter, and LinkedIn.