Retailers hope to draw picky Black Friday shoppers to stores (updated)

Unibail-Rodamco-Westfield SE

24/11/2023 11:03

(Adds global Black Friday in paragraph 7, France Italy and
Spain details in paragraph 8, UK Westfield mall forecast in
paragraph 17)
    By Katherine Masters
       NEW YORK, Nov 24 (Reuters) - Retailers are hoping
forecasts for a cool, dry Black Friday across much of the U.S.
will drive millions of shoppers to their stores in the kickoff
to the key holiday shopping season. 
    But with many shoppers facing financial pressure, U.S.
holiday spending is expected to rise at the slowest pace in five
years. Most major retailers slashed their seasonal hiring. 
    "Consumers are still being very cautious, so if holiday
sales do go up, we think it will be due to inflation raising
prices," said Jessica Ramirez, a senior research analyst at Jane
Hali & Associates.
    U.S. shoppers plan to spend an average $875 on holiday
purchases -- $42 more than last year -- with clothing, gift
cards and toys at the top of most shopping lists, according to a
survey of 8,424 adults conducted in early November by the
National Retail Federation, a U.S. retail trade group.
    A record 130.7 million people are expected to shop in-store
and online in the U.S. on Black Friday this year, it estimates.
    Originally known for crowds lining up at big-box stores in
the U.S., Black Friday has moved online and gone global.
    In France, Italy, and Spain, most shoppers planned to buy
clothing on Black Friday, with electronic goods coming second,
according to a PwC survey. 
    On average, shoppers in France expected to spend 295 euros
($322) on Black Friday according to the survey.
    Executives say the rise of online shopping has made Black
Friday less important as a single-day event. Retailers from
Macy's to Amazon now launch deals as early as October and often
offer additional discounts closer to Christmas, Macy's CEO Jeff
Gennette told investors this month.
    Most U.S. stores were closed on Thanksgiving but will open
to shoppers at 5 a.m. or 6 a.m. on Friday. A coalition of
activist organizations, including antiwar group "Act Now to Stop
War and End Racism," has called for "disruptions and rallies" at
major commercial centers on Black Friday to demand a ceasefire
and end of aid to Israel. The New York Police Department said on
Wednesday that "there are currently no credible threats to any
individual event or to New York City in general" over the
holiday weekend.
    In post-earnings calls this week, retailers from Kohl's
 KSS.N  to Nordstrom  JWN.N  told investors they had invested in
jackets, cashmere sweaters and Ugg boots to lure Christmas
shoppers after an unseasonably warm October. Macy’s  M.N  also
touted Black Friday deals on seasonal attire, including 60% to
65% off men’s and women’s coats, according to its website.
    To be sure, some retailers hold their biggest markdowns for
the Thanksgiving holiday weekend, and big-box players including
Walmart  WMT.N , Lowe’s  LOW.N  and Home Depot  HD.N  maintained
or deepened their advertised discounts. 
    Whether those deals will convince inflation-weary consumers
to open their wallets is the biggest worry for retailers on
Friday. Several categories of merchandise that were top sellers
on Black Friday in previous years have been hit hardest by the
recent downturn in discretionary spending, said Mari Shor, a
senior equity analyst at Columbia Threadneedle Investments. 
    Best Buy  BBY.N , for instance, is offering between $100 and
$1,600 off electronics including laptops, flat-screen TVs and
KitchenAid mixers after telling investors this week that
shoppers are still holding off on big-ticket purchases.
    A downturn in luxury spending has also prompted department
stores, including Bergdorf Goodman and Nordstrom to offer steep
discounts on items such as Balenciaga shoes and Oscar de la
Renta earrings. “Designer remains pressured, primarily in shoes
and handbags, and we continue to right-size our inventory to
meet that demand,” Nordstrom President Pete Nordstrom told
investors on Tuesday.
    Mall owner Westfield said it expects more visitors to its
shopping centres in Britain this year than in 2022, with
footfall up more than 6% so far this week, according to Katie
Wyle, head of shopping centre management UK at
Unibail-Rodamco-Westfield.
($1 = 0.9168 euros)

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
EXPLAINER-What is Black Friday? And will shoppers find bargains
this year?     urn:newsml:reuters.com:*:nL6N3CI0HC
FOCUS-US retailers stuck with excess stock offer bargains as
holiday season nears      urn:newsml:reuters.com:*:nL1N3C11IK
US retailers brace for a tough holiday season despite discounts 
   urn:newsml:reuters.com:*:nL4N3CM2W3
Walmart sounds a note of caution on consumers ahead of holidays,
shares fall     urn:newsml:reuters.com:*:nL1N3CH124
Target shares surge on margin improvement, inventory drawdown   
 urn:newsml:reuters.com:*:nL4N3CG2ZJ
US holiday sales set for slowest year since 2018 as consumers
turn frugal - report     urn:newsml:reuters.com:*:nL4N3AK3AD
ANALYSIS-Dwindling excess savings could scupper markets'
soft-landing hopes     urn:newsml:reuters.com:*:nL4N39A1U0
ANALYSIS-Santa's sleigh to be lighter as people buy fewer toys  
  urn:newsml:reuters.com:*:nL6N3CG0DA
Walmart staffed up for holidays; US retailers cautious about
economy     urn:newsml:reuters.com:*:nL4N3BM34Q
US holiday sales growth to slow as inflation pinches wallets -
report     urn:newsml:reuters.com:*:nL4N3C34AP
Toymakers Hasbro, Mattel slump after sounding alarm over holiday
spending     urn:newsml:reuters.com:*:nL4N3BW360
US economy cools as retail sales dip, monthly producer prices
decline     urn:newsml:reuters.com:*:nL1N3CG1HK
Walmart bets on parcel stations for quick deliveries to propel
holiday sales     urn:newsml:reuters.com:*:nL4N3CM3QY
Best Buy flags weakening consumer demand heading into holiday
shopping season     urn:newsml:reuters.com:*:nL4N3CM2GP
Amazon, Walmart court early holiday shoppers in US with
limited-time deals     urn:newsml:reuters.com:*:nL1N3BF1XU
U.S. online sales to grow 4.8% in crucial holiday season -report
    urn:newsml:reuters.com:*:nL4N3B33SE
FACTBOX-US companies unveil hiring plans ahead of holiday
shopping season     urn:newsml:reuters.com:*:nL4N3BO40L
GRAPHIC-Over 16% of retail sales in the US are returned    https://tmsnrt.rs/3R5Jy2a
GRAPHIC-US holiday sales expected to gain pace this year    https://tmsnrt.rs/46hMz3I
US holiday sales expected to gain pace this year    https://tmsnrt.rs/3FZFTwf
Over 16% of retail sales in the US are returned    https://tmsnrt.rs/3R22e2G
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Katherine Masters, additional reporting by Mimosa
Spencer in Paris and Helen Reid in London; Editing by Josie Kao
and Miral Fahmy)
 ((Katherine.Masters@thomsonreuters.com;))