Melody Geffert
Mr.Reuter
B4 Economics
20 September 2015
Black Friday Sales
Although malls always seem to be overcrowded with impatient, pushy people in the early hours of Black Friday, there have actually been less Black Friday shoppers in recent years and sales are on the decline. This video explains the economics of Black Friday, but basically it’s considered the first day of holiday shopping so big sales are advertised to draw even bigger crowds. Black Friday prices typically don’t have much consumer surplus, the difference between what a consumer is willing to pay and what the price is, because they are advertised as such great deals. However, Black Friday has the competition of Cyber Monday and, in the past of couple years, has been losing. According to a CNN Money article, Black Friday had a decrease of 5.1 million shoppers from 2013 to 2014 which is about a 7% decline. This partly accounts for the 11% sales decrease over the four-day weekend of Thanksgiving and Black Friday last year (Wahba). Also, as can be seen on the chart below, the National Retail Federation discovered that the money spent by the average shopper went down by 6.4% from 2013 (Halzack).
While in-store spending around Thanksgiving has been on a decline, online shopping has been raking in the cash. From 2013 to 2014, there was a 14% increase in American online spending on Thanksgiving and a 10% increase on Black Friday (CNNMoney). Consumers with a scarcity of time jumped on the efficiency of at-home shopping on Cyber Monday. Cyber Monday is the Monday following Black Friday when online shopping has sales or incentives such as free shipping. It has much less of a trade-off for consumers: no long lines, no crowds, no driving around at 2 AM, but still the same great deals as Black Friday.
As technology improves the efficiency of Cyber Monday, one can assume Black Friday will continue to follow its decline in sales. Last year, retailers attempted a new tactic of offering deals earlier on Thanksgiving night rather than on Black Friday in the early morning. Walmart even opened its doors as early as six o’clock. The deals spread across the weekend instead of just the morning of Black Friday. This tactic backfired and Black Friday seemed like less of a big event. Consumers had more self-interest in staying at home, buying online, and having their products delivered to them.
This year, retailers should go back to promoting the six hour rush (12 am- 6am) on Black Friday. Their only hope to compete with Cyber Monday is to offer better deals over a short period of time. The online market is a huge competitor and retailers will have to pull out their best deals to win over consumers. Employees may fear the sight of a huge crowd pushing through doors, but it’s a sight that retailers profit from. After all, Black Friday is intended to attract the two things every business depends on: consumers and cash.
Works Cited
Federation, The. "Fewer Shoppers Hit the Stores on Black Friday." CNNMoney. Cable News Network, 30 Nov. 2014. Web. 21 Sept. 2015.
Halzack, Sarah. "Fewer Shoppers and a Decline in Spending during Black Friday Weekend." Washington Post. The Washington Post, 30 Nov. 2014. Web. 21 Sept. 2015.
Kay, Roger. "Black Friday (Thursday, Wednesday..)." Forbes. Forbes Magazine, 28 Nov. 2014. Web. 21 Sept. 2015.
Wahba, Phil. "How Retailers Shot Themselves in the Foot with Early Black Friday Deals." Fortune. Time Inc. Network, 1 Dec. 2014. Web. 21 Sept. 2015.
"Why Black Friday and Cyber Monday Don't Really Matter Any More." Bloomberg.com. Bloomberg, 1 Dec. 2014. Web. 21 Sept. 2015.
I liked your topic because it is the start of the fall season and Black Friday is always fun! I agree that the time for Black Friday deal shouldn't start earlier on Thanksgiving. Thanksgiving is a time to be thankful for what you have and spend time with family. If we extend Black Friday to earlier on Thursday it will decrease sales and take away from the sole purpose of Thanksgiving. I see why Cyber Monday is becoming bigger than Black Friday, it is just overall easier. No lines, no crazy people and you can stay in the comfort of your own home! Nice article, Melody!
ReplyDeleteI found your article very interesting to read. I was not aware that Black Friday sales were actually dropping. It would seem because of the increase of advertising and all that the sales would be increasing when in fact they are decreasing. I also thought you tied the whole thing to economics class well and used good terms that we learned in class. I agree that I think that Black Friday will continue to follow the same trend and continue to decrease in sales because Cyber Monday is a lot easier and less time consuming.
ReplyDeleteI used to always go Black Friday shopping every year. But, in the last few years I haven’t gone because of all the deals online. It is hard to pass up a good night sleep when you can get the same deals online. If online sales keep being as competitive as they are, Black Friday will continue to diminish. I think that for some, Black Friday is a tradition for them and just like the rush and aren’t as concerned with getting the best deals.
ReplyDeleteYour topic interested me right away because it deals with shopping and one of my favorite days to shop--Black Friday. As soon as I began to read it I became for fascinated with it. Due to the statement you made "there have actually been less Black Friday shoppers in recent years and sales are on the decline". This was interesting to me because I haven't noticed this as I go shopping on that day; but I have noticed the sale decline. Also, your discussion points about Cyber Monday in competition to Black Friday was a good inclusion because of the fact that they are a few days within one another and because one is online and the other is physically moving to go shopping. I wasn't very surprised by the huge decrease in consumers on Black Friday and the up rise of consumers for the online way of shopping--since technology is easier and less work over all. Furthermore, this topic was enjoyable to read and was interesting to learn more about the details to this "shopping holiday".
ReplyDeleteMelody, I find it both surprising and not surprising that the sales are dropping. Because really, who wants to spend their Thanksgiving working? And how many people are willing to skip Thanksgiving with their family just so they can go spend money? Not many people. So because of this I can see why people would just wait for Cyber Monday. As the world continues to go more and more online, I think that the Cyber monday will become a bigger and bigger thing. Over all though, you did a great job writing this, and using the certain words.
ReplyDeleteI really liked your topic as well. I think that it is something that a lot of people are interested in or participate in. Obviously since it is kind of coming up in the next few months. While I was reading I found it very interesting since I have gone black friday shopping and can totally relate to what your talking about. I liked how you talked about cyber monday. I didn't really think about that as much. I think that it was good that you added that in there, kind of comparing them and saying how much competition that they have.
ReplyDeleteGood analysis of the economics of Black Friday. I wasn't surprised to see that Cyber Monday is taking over Black Friday, however, I don't believe that Black Friday needs make a comeback or be more competitive. Almost every store has an online version, so stores must be making much more money when combining Cyber Monday and Black Friday, and therefore there is no need to try to "re-make" Black Friday. Also, Black Friday is inefficient because, although it is fun, it wastes resources such as time, gas, and effort, when the same deals could be gotten in the comfort of your house.
ReplyDeleteThis is a great topic that attracted my attention right away. I never really thought about all of the economics that went into Black Friday and Cyber Monday. I don't know how Black Friday could be even more competitive, especially after last year where more stores started a whole day early. I personally have never been a fan of Black Friday because I got just as good deals on Cyber Monday. Not to mention Black Friday was on Thanksgiving night last year which is taking people away from their family. I'd rather avoid shopping and getting pushed around but there is enough people that have made it a tradition to keep the unofficial holiday of "Black Friday," going. Overall this was a great topic that made me think more about the efforts put into Black Friday.
ReplyDeleteIt isn't really surprising this is happening because first off shopping online and getting almost as good a sale is a lot better then going to a store at midnight and risking the chance that you get trampled for a TV. Shopping online is just a much better experience for consumers. A big part of markets now a days is convince and comfort and when it comes down to it, people just don't wanna get trampled, they just don't. Besides deals are just as good on Cyber Monday. Good topic really interesting!
ReplyDeleteThis was an interesting topic that can grab a lot of different people's attention. I liked the facts and stats that were stated near the end of paragraph one about the percent decline, but it also raised a question as what does that even mean? Why does it matter that it's decreasing, does Black Friday decreasing in sales negatively effect our economy at all? Because after all it is one day, but overall good job.
ReplyDeleteI like how you compared the decline in Black Friday sales to the increase in cyber Monday sales. It was neat to see how they effected each other. Because Black Friday is such a hassle and cyber Monday is not, although cyber Mondays costs may be a tad more, the opportunity cost to the consumer proves that is more effective.
ReplyDeleteI am not really surprised by this, every year slowly and slowly online sales increase in almost every aspect of shopping. I myself worked last Black Friday at Menards and at 6:30 we had a line of people wrapped around the parking lot. I'm hoping the shrinking of in-store shoppers continues to shrink because myself along with millions of other employees fear this day. -Tyler Hull
ReplyDeleteGreat topic. I think it is something that a lot of people know about these days, and are able to see the changes made every year to sales tactics. You did a great job of explaining how cyber monday is taking over black friday, and how businesses are trying to change that. It is more logical and much safer to buy online because like you said, you get the same deal, but you save yourself the risk of dealing with other angry shoppers.
ReplyDeleteIt doesn't surprise me at all that Cyber Monday is becoming much more popular than Black Friday. These days, people don't have the time to actually go out and shop, so the easier, less time consuming option is online shopping. Why waste gas by going out and driving to the nearest mall when you can stay in the comfort of your bed and simply click on items and add them to your cart? However, most stores have online shops, so they really will be making money either way. Personally, I love the experience of shopping at midnight. But a lot of the time I would rather spend time with my family on the night of Thanksgiving than go out and shop - I can just do it on Cyber Monday instead! Overall very interesting topic!
ReplyDeleteI definitely agree that this year, retailers should go back to promoting the six hour rush on Black Friday. Lowering prices will bring more and more people in; which means they’ll spend more as well. Giving shoppers only a small amount of time with great deals will give them more of an incentive to go. They will think “I only have a few hours to get this great deal!” so they’ll go and shop there. But if the sales are spread throughout multiple days, people will see that it isn’t as important and will put it off or not shop there at all. I also strongly agree that people are shopping online more than usual these days. It’s easier because they have access to more items (possibly), don’t have to leave their house, and get the items shipped right to their door. There are also sales and deals all over the place that attract those customers.
ReplyDeleteYour topic definitely caught my attention, being one of those shoppers myself. It's interesting to see how much planning and detail goes into Black Friday shopping. I do agree with your data that shows how people are not spending as much as they used to in-stores. The solution you offered in order to increase the in-store revenue by changing the store times back to the six hour rush seems like a good idea. However, do you think that the six hour rush is enough to bring the in-store profit back up to it's former revenue, or will the convenience of online shopping continue to dominate? I don't think it really matters to the businesses whether customers are buying in-store or online, as long as they are buying from these companies, but it was nice to see from the perspective of the workers in the stores.
ReplyDeleteI thought this was a very good and relevant topic to discuss. Everyone is familiar with Black Friday and Cyber Monday and you did a good job informing the readers how Cyber Monday is becoming more and more popular compared to the traditional Black Friday rush. I liked how you explained the trade-offs of ordering online, for example not having to drive around in the middle of the night and wait in crazy long lines. However, it surprises me that people like to online shop as much as they do. I personally like to try things on in the store and make sure what I'm buying has good quality and craftsmanship. Also, I'm surprised people have the patience to wait for their items to come in the mail. Overall, you did a great job and you picked a very interesting topic.
ReplyDeleteCyber Monday has become a more popular event for a few major reasons such as no physical risk, no waiting in line, and no sore feet. I always find this topic to interesting because almost everyone has partaking in Cyber Monday, and it's also easier for people to find what they want. Technology brings a simple, safe, relaxing way of doing one of the most tedious tasks in life. With more and more soft-card technology being used like google wallet I'll be surprised if anyone goes to the store in 50 years or so.
ReplyDeleteI thought that you had a really great analysis of why in store sales are decreasing during Thanksgiving time. It really shows how an increase in technology through the worldwide web can have an effect on sales. It is interesting to add also that stores without an online section have experienced a decrease in sales, as consumers find it easier to buy the same items from a different store online. This online store concept could also add to the economy, as packaging and shipping costs are costs not applicable at physical stores. Overall, I thought that you chose an interesting topic, and am curious to see if this trend continues in 2015.
ReplyDeleteMel I really enjoyed your topic! As an active Black Friday shopper it is interesting to see the contribution that shopping on that day has on the economy. I thought it was great that you brought up Cyber Monday and how that is making it easier for sale shoppers to enjoy the experience from home without dealing with the hectic lines and store chaos.I feel that as technology advances that Black Friday will be almost absolute and Cyber Monday will become a more preferred way of sale shopping.
ReplyDeleteHaving had the experience of working at Walmart on Thanksgiving I agree that the madness has gone down quite a bit. I think that the reason is that people don't want to sit out in the cold and wait for a product when they can get the same deals online. I don't think that retailers look good to customers either when they open their doors on Thanksgiving and people don't want to shop them as much as they would a store that is closed on Thanksgiving and wants their employees to share that valuable time with their families. In my opinion stores should go back to sales on Friday and put more of a focus into online advertisement.
ReplyDeleteThanks for picking a topic you knew lots of students could relate to, and adding new insight by analyzing how our own money is used in our own economy. I think your post could've been strengthened by a little but more of your opinion, I'm curious to know what your opinions are about the shift to online shopping. Also, I wonder what types of promotional offers and new advertising will result from the shift.
ReplyDeleteI loved your topic and thought it was written very efficiently. With all of us being teenagers, and we love to shop, we know about Black Friday and could connect to your essay very well. We can relate and form connections to our own personal life. For example, I have never been big on Black Friday shopping, it just wasn't my style and I always thought the lines and tons of people were outrageous. I did a little online shopping on Cyber Monday and I did have some great deals without going through the chaos at the mall. Even though this is my point of view, it seems like more and more people are going with the easier solution, like me, and online shopping on Cyber Monday. I didn't know, however, that 5.1 million people shopped less than last year. That was a crazy amount and I didn't know Black Friday sales were dropping this much. I agree with you that they will keep dropping as our technology advances in the country.
ReplyDeleteHaving had the experience of working at Walmart on Thanksgiving I agree that the madness has gone down quite a bit. I think that the reason is that people don't want to sit out in the cold and wait for a product when they can get the same deals online. I don't think that retailers look good to customers either when they open their doors on Thanksgiving and people don't want to shop them as much as they would a store that is closed on Thanksgiving and wants their employees to share that valuable time with their families. In my opinion stores should go back to sales on Friday and put more of a focus into online advertisement.
ReplyDeleteReally enjoyed this topic because I didn't realize that Black shopping was not popular as much anymore. I really liked how you talked about the Cyber Monday. Knowing that the online shopping stores are making more income for sales. It will probably lead up to malls or such having different times because of the decrease.
ReplyDeleteAlthough an increase in technology can reduce the driving hazards, technology is also continuing to dig its way into every crevice of human lives. This to me is scary because humans are not having to interact as much which may eventually dull down the world and bring many negative side effects.
ReplyDeleteI think it is interesting yet not surprising that sales are going down on black Friday. Most people don't want to spend the time and hassle going out on Black Friday. Also, from experience the stores want to make you think you are getting a good deal when in reality most stuff isn't even marked down that much. I think your analysis of why the sales were decreasing was really strong. Also, sitting in the comfort of your own home getting the same prices as in store is really tempting and convenient. I like how you added a trade-off that retailers have to do in order to make more sales. Lower the costs with hopes of people spending more, or keep high costs and have people spend less.
ReplyDeleteIt almost surprised me to find that black Friday sales have been decreasing at the rate they are. It seemed obvious after I read it but never game too much thought to it before hand. As time goes on I would expect to see people buying almost exclusively at home and only going out for things like food(restaurant) or entertainment instead of shopping for groceries, toys, or anything else really. Perhaps more companies today should consider marketing their products online so that if this trend continues they can be ready.
ReplyDeleteGreat writing, and the vocab words flowed very nicely with the rest of the text. Your post was very helpful for bringing me to an understanding on the subject. However, it would have been nice to see if you dove into the trade offs of cyber Monday as well, such as shipping prices and waiting times.
ReplyDeleteThis was a very good topic to choose and it was amazing the amount of data you were able to pull in. It wasn't very surprising that the online shopping is starting to take over the in store shopping considering all of the news headlines about violent shoppers. However would there be some point that it would have to balance out? If everybody begins to do the online shopping around the same time would the delivery system fail to ship every single item on time. Is there anything that would suggest the deals that are online are better than the ones in stores or is it only the ease of shopping online that draws people in?
ReplyDeleteThis was a very interesting topic to read about! I knew Black Friday shopping numbers were dropping, but I didn't realize that they had been going down by millions. I understand why they would, though. Nobody wants to get up at 3 in the morning to wait in the cold for hours, only to get in and be pushed around by crazy people. I think the slow switch from Black Friday to Cyber Monday is a good thing, because every year, people are seriously injured in mauls on Black Friday.
ReplyDeleteIt was easy to relate to this topic and I'm sure most other students can as well. I personally always wanted to go on Black Friday cause its a fun experience to go shopping at night and being able to get all those deals once a year. Opening the doors on Thanksgiving I don't agree with because that is a holiday that should be celebrated with the family and it hard to do so when there are so many deals that people just don't want to wait the next day. So it only makes sense that over the past years Black Friday sales have dropped because there are easier ways to shop and get the same deals. I agree that Black Friday should go back to that 6 hour rush but I don't think that will be possible with the amount of technology we have.
ReplyDeleteThis topic really grabbed my attention, since I love Black Friday shopping and go every single year. However, I know that last year there were many store that opened way earlier than they usually do. Eventually each year it’s going to keep opening up earlier and earlier and just how Sara mentioned, Thanksgiving should be celebrated with family and not rushing to the stores. Just how you mentioned Wal- Mart opened at 6 and it can benefit the business to attract more customers and to increase their profit. However, this will only cause a more of a riot if everyone comes at that time to get the best deals. Since their anticipating not to spend as much money but still waiting in line for hours to get inside the store. Which would be their opportunity cost to sleep or be doing something else. And with all their time spending their time at the stores, the sales for cyber-Monday might go down each year.
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ReplyDeleteThis is a very well written piece, and I liked how you tied in what we learned in economics so far to explain the decline of Black Friday. You would think that there wouldn’t be much incentive to lose sleep, and even miss out on Thanksgiving for deals that people aren’t even guaranteed to get due to the shortage of product. Cyber Monday seems like the much more desirable time to shop.
ReplyDeleteIf holidays could be considered as goods and services, then Black Friday and Cyber Monday could be substitutes; people tend to prefer one over the other. With all of the benefits of Cyber Monday, such as avoiding crowds and lines and the ability to shop from the comfort of your own home, it is quickly becoming the preferred good. The opportunity cost of being able to see/ try on the goods being purchased in person is worth it to many people who would rather avoid the craziness of the shopping season.
ReplyDeleteI have never have been shopping on black Friday, but I know that it can be stressful, especially after a holiday. I can see why people will want to stay home and shop, rather than go out early in the morning. It's a good thing that Black Friday is dying out because many injuries, whether in the store or on the way to the store, accidents, occur. Next time you could more finely identified a side and explain in depth why so that the reader knows your opinion along with the facts. I really liked the facts and information that you did use though!
ReplyDeleteI think you did a very good job writing this piece. Personally I use to love going black friday shopping with my mom, aunt and cousin but then you are exhausted the next day so the past two years we haven't gone and I've done exactly what you said, I've participated in Cyber Monday. I think you did a great job with information to back up your statement like saying how technology is a huge factor that is hurting Black Friday. Overall, I think you did a really good job writing this piece.
ReplyDeleteNot only is Black Friday battling Cyber Monday, but it is battling the economy as well. When the economy is on the rise or in good standards, people are better off. This means that the difference between a $15 toaster and a $4 toaster isn't that important to most americans. When the economy is down and people begin pushing pennies, that $11 off would be a lot more appealing, making people more likely to go out of their way to drive to wal-mart at midnight and skipping a ight's sleep for these deals.
ReplyDeleteIt seems as though people really need the product or not they will buy it anyway since they believe they are getting a good deal. All this income generates lots of money into the economy.
ReplyDeleteI thought you did a great job analyzing this topic. Even though I have never been Black Friday shopping, I would love to get good deals without having the stress of busy shoppers pushing others around at the stores. I would much rather shop in the comfort of my own home. I can see why the in-store sales have decreased over the years. I believe that stores should not truly start their deals until Friday. Or else it would defeat the purpose of Black “Friday”. Thanksgiving on Thursday should be spent with family and friends. People who choose to shop on Thursday are making a trade off not to spend time with family and friends. Shoppers may also want to consider purchasing online items on cyber Monday instead of Black Friday to get a better deal.
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ReplyDeleteThat's very interesting because you think the more products get produced around that time and new things you would have people buy more. The more the sales the more money and customers you will get. Nice chart it clearly shows your main focus on how Black Day Friday shopping has been declining. Deals and advertisements gets me. I haven't been Black Day Friday shopping. Nice topic and it makes you thing more.
ReplyDeleteYes, you were right! That is extremely fascinating on the grounds that you think the more items get created around that time and new things you would have individuals purchase more. The more the deals the more cash and clients you will get. Pleasant diagram it unmistakably demonstrates your primary spotlight on how Black Friday Sales shopping has been declining. Arrangements and promotions gets me. I haven't been Black Day Friday shopping. Pleasant theme and it makes you thing more.
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