Black Friday has drastically changed over the past few years. In 2022, we predicted that the event would ultimately differ from the previous years. Black Friday sales started earlier than usual this year due to consumer uncertainty caused by the looming recession. As a result, many retailers began releasing Black Friday ads as early as September and October, offering month-long sales.
Since inflation is currently at an alarming level, people are likely to be more cautious regarding their spending. However, this could also lead them to be more eager to purchase items at deep discounts on Black Friday. Therefore, those looking to upgrade their wardrobe or electronics await this day to buy products at a discount to save money. In addition, with holiday gatherings returning, the demand for home goods is expected to be strong.
Brick and Mortal Locations Closed for Black Friday
For the past couple of years, retailers have decided to close their stores on Thanksgiving Day due to the COVID-19 pandemic. They also cited various safety concerns as the reason for their decision.
Some retailers, such as Target, announced in 2021 that they would be closing their stores on Thanksgiving Day. We expect other major retailers to follow suit. They might not be able to make a permanent announcement, but we expect them to close their doors on Thanksgiving in 2022.
Membership and Loyalty Programs
This year, we expect more retailers to encourage shoppers to sign up for their membership programs during Black Friday. It’s a way to get their customers to complete their purchases, and it also helps boost their sales and provide a steady stream of income.
Amazon is known for holding exclusive sales only available to Prime members. For instance, during Prime Day, the company offers a wide range of products and services only available to its members.
Walmart participated in the retail membership action by holding three events during Black Friday last year. These events gave members early access to the company’s exclusive sales. Best Buy also tied some of its perks to its Total Tech membership.
Unfortunately, it’s also possible that many people who sign up for retail membership programs end up dropping out of the program once the holiday season is over. According to a study by Bizrate Insights, the number of people who pay for a membership increases during the holidays but then drops off in the following months.
Payment Plans and Installments
Through partnerships with third-party companies, many retailers have started offering payment plans that allow customers to pay for their purchases in installments.
These payment methods were previously only available for larger purchases, such as furniture or televisions. With these plans, consumers can now pay for a $40 sweater in installments.
Due to the rising prices of products, we expect more people to try out pay-later payment methods. According to data from Salesforce, the number of people who used the buy now and pay later payment methods during Cyber Week in 2021 increased by almost 30%.
Gift Cards will be a Popular Gift
During the 2021 holiday season, gift cards were popular because of their purchasing convenience at any retailers participating in the Black Friday sale. As a result, Blackfriday.com expects more promotions and bargains this Black Friday and more products linked with gift cards.
The increasing popularity of gift cards can be attributed to the fact that people are more likely to spend money on experiences instead of buying physical goods. With a gift card, they can enjoy various activities, such as going to a movie or staying at an Airbnb.
You’ll See Digital Ads Everywhere
The release of advertisements during the week leading up to Black Friday is also a critical factor contributing to the hype surrounding the event. Retailers can unveil their deals through flyers circulated digitally as ad scans.
For instance, Best Buy has been releasing deals through a press release instead of an ad. The strategy lets customers immediately see the deals and add them to their shopping carts. It benefits retailers by allowing them to reach out to more potential customers.
Cyber Monday Might be Bigger than Black Friday this Year
Since its inception in 2005, Cyber Monday has been one of the best days for online retailers. In 2022, it will be the most profitable day of the holiday season and even the year. According to Adobe, this year’s spending is expected to reach $11.2 billion, an increase of 5.1% from last year.
Cyber Monday has become a popular event due to its hype, but the deals that retailers offer are usually the same on Black Friday. This strategy allows them to reach out to their customers and give them a second chance to purchase products they missed out on Black Friday.
Many of our clients here at SimpleVoIP are prominent retailers with hundreds and even thousands of locations within the country. So if you’re looking for an affordable VoIP and UCaaS service provider that can quickly provision for your locations and easily set up your communication system, let us know!
We have supported our clients through the Black Friday rush with huge success. So if you’re having problems with your current service provider, it’s time to switch to SimpleVoIP. Get a free consultation now!