Black Friday Sales Projected to Rise 4%18 Nov, 2013 By: Erik Gruenwedel
Sluggish economy and unemployment continue to undermine consumer spending
Don’t expect the upcoming Black Friday (Nov. 29) and Cyber Monday (Dec. 2) weekend to reignite consumer spending to pre-2008 recessionary levels, according to new data from IBISWorld.
With tight budgets expected this holiday season, Black Friday and Cyber Monday spending increases are projected to be smaller than those of 2012. Black Friday is projected to generate $13.6 billion in revenue, up 3.9% over last year’s total, but down from the 5.9% spending increase between 2011 ($12.3 billion) and 2012 ($13.1 billion).
The smaller increase this year is due to the continued sluggish growth in disposable incomes and enduring high unemployment. Growth in Black Friday revenue will be driven largely by doorbuster deals and online sales that start at midnight.
Spending during the Black Friday weekend is anticipated to grow just 1.7% to $38.7 billion. The bulk of weekend purchases (35%) are expected to be made on Black Friday itself, owing to the discounts and the spirit of the day itself.
Cyber Monday, while still only about 15% the size of Black Friday in terms of revenue, is forecast to record double-digit growth of 13%. The $1.8 billion shopping day has increasingly made its way to the top of shoppers’ preferences for its plethora of online deals and free shipping promotions. This year will be no exception, as Cyber Monday outpaces growth during the remainder of the holiday shopping weekend.