Black Friday is traditionally one of the busiest days, and it's a day after Thanksgiving on which retail stores draw in many shoppers by offering discounts on their sales items. Black Friday economic impact is often intense because of the people's impetus to spend during the holiday season with their lovely family and friends. Interestingly, National Retail Federation (NRF) statistics shows that 30 percent of retailers' annual sales are recorded between Black Friday and Christmas. Additionally, NRF statistics shows that 2.5 percent increase in annual sales during this period over the past ten years. Retail stores, as well as the stock market, records a black.
What Are The Black Friday Economic Impacts?
Retail stores issue discounts in various forms to avail cheaper items to shoppers through various
Black Friday has major economic impact that includes:
- Employment increment opportunity: with a higher expectation of receiving more consumers, retail stores employ thousands of seasonal employees to render their service to the expected high number of consumers. It is estimated that over 700,000 seasonal employees are employed during this period.
- Increased consumer spending: In 2014 alone, the average consumer spending was about $802. Consumers are driven to spend more during this period because of the discounts offered as well as the Christmas spirit that drives them to spend more than any other time of the year.
- Abnormal sales experienced by retail stores: there is a potential by retail stores to make between 30 to 40 percent of their annual sales on a Black Friday. This is usually an opportunity for the retail stores to make more sales and is an economic period that is often planned earlier by the stores.
- The upsurge in online sales and relationship for many businesses: most shoppers visit websites for clues and choosing the preferred brand. This is a great opportunity for businesses to improve their online presences for better sales and economic benefits.
- The upsurge in stock trade: stock markets experience a high number of trading activities on Black Friday. Black Friday is the leading indicator because of the consumers' willingness to spend and that enables investors and stock traders to gain more confidence. A thriving and profitable shopping season drives the investors to invest as well because of the higher sales made by the company and increased impetus by consumers to spend.
Other Probable Role of Black Friday On The Economy
Black Friday acts as an indicator of how stable the economy is. When consumers withhold their spending than other periods, economic experts advise that it indicates the economic state of the nation. Higher spending level indicates a good economy or a potential economic standpoint in the coming period. That is because consumers' willingness to spend instead of saving indicates a stable economy or expected future economic prosperity.
Black Friday is, therefore, an important day not only for retail stores owners and consumers but in economic aspect as well.