Ah, the holiday season: a time of festivity, cheer and capitalism. But wait, why is no one getting trampled on Black Friday like they used to?
As late as the first Trump administration, Americans would watch the news on Black Friday, marveling at the long lines wrapping around department stores or people camping outside Best Buy at 3 a.m. just to snag the latest flat-screen TV (with the occasional casualty).
Now, it’s different. Malls are no longer crowded, and the deals have lost their appeal, as evidenced by countless online posts complaining about the lack of significant discounts on Black Friday, which have garnered thousands of upvotes.
One obvious reason for the decline of Black Friday is the rise of e-commerce and online shopping. Cyber Monday, traditionally the Monday after Thanksgiving weekend when online retailers offer discounts, has lost its original meaning as more in-person stores now offer separate deals for online shoppers.
In fact, according to the National Retail Foundation, Black Friday outpaced Cyber Monday by more than ten million consumers in online shopping in 2022, with 87.2 million shoppers compared to Cyber Monday’s 77 million.
After the COVID-19 pandemic, businesses transitioned to e-commerce. This resulted in a decline in in-person shopping—an experience that Black Friday was traditionally known for.
Placer.ai, a foot traffic monitor, reported that in-person shoppers declined by an average of 14.57% in 2022 compared to 2019 for offline retailers such as indoor malls, outlet malls and open-air lifestyle centers.
In addition, Black Friday isn’t limited to Black Friday anymore—it’s Black November or Black Holiday Season, as some retailers have chosen to extend and merge their Black Friday and year-end sales into one long discounted period.
“When you think about Black Friday, the competitive landscape has really shifted to Black Friday deals prior to Black Friday,” Macy’s chief executive Jeffrey Gennette said.
This trend has impacted our local microeconomy, as malls like the Irvine Spectrum or South Coast Plaza continue to greet smaller crowds every year. At the Irvine Spectrum, 61 out of 96 of its retailers currently offer separate discounts on their online storefronts, further discouraging in-person shopping on Black Friday—and further disadvantage smaller local businesses whose online stores aren’t as well developed as others.
With inflation at an all-time high and the Federal Reserve raising interest rates to slow the vulnerable economy, shifts in consumer demographics are always a point of interest for retailers. While hunting for coupon codes this Friday, consider making an in-purchase at a local retailer.