Black Friday sales are surging - and it reveals an ominous reality about the retail industry
Getty/Eduardo Munoz Alvarez
- Shoppers have already spent more than $1.52 billion over the Thanksgiving holiday.
- Sales are soaring in part because discounts have never been steeper.
- Nearly half of the US apparel market was discounted on Thanksgiving, with an average promotion of 47% off the full price
Black Friday sales are soaring with shoppers already spending more than $1.52 billion online on Thanksgiving evening - a 17% increase over last year, according to Adobe Analytics.
"Thanksgiving is shaping up to be a record-breaking shopping day," said Mickey Mericle, vice president, Marketing and Customer Insights for Adobe.
The strong sales are a positive sign for the struggling retail industry. But a closer look reveals a far more ominous reality: retailers had to drop prices lower than ever to get shoppers to spend money.
Discounts are hitting record highs this year, according to Edited, a retail technology company.
Nearly half of the US apparel market was discounted on Thanksgiving, with an average promotion of 47% off the full price.
Accessories are the most discounted category, accounting for more than 35% of reductions, followed by tops (21.7%) and footwear (13.3%).
Luxury handbags are also steeply discounted, with an average discount of 40%-50% off, up from 30%-40% last year. Items like puffer coats and quilted jackets have an "astronomic" discount of 60%-70% off the full price, Edited said.
Discounts on technology are slightly lower, but still strong.
Average promotions include 24% off televisions and tablets and 18% off appliances, according to Adobe Analytics.
Cyber Monday will have the highest discounts off of toys, at about 19% off regular prices, Adobe said.
Overall, shoppers are expected to spend $107.4 billion online this holiday season, representing an increase of nearly 14% over last year, according to Adobe. Cyber Monday will be the largest online shopping day in history, with $6.6 billion in sales.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas
- IndiGo places order for 30 wide-body A350-900 planes
- Markets extend gains for 5th session; Sensex revisits 74k
- Top 10 tourist places to visit in Darjeeling in 2024
- India's forex reserves sufficient to cover 11 months of projected imports