Buying Shifts Benefit Some Stores, Hurt Others, Say Business Profs
12/08/2020
Contacts for media: Nancy Cicco, 978-934-4944, Nancy_Cicco@uml.edu or Christine Gillette, 978-758-4664, Christine_Gillette@uml.edu
Long the shining light of the holiday shopping season, Black Friday continued to lose its luster this year, as the COVID-19 pandemic and slumping economy leveled a one-two punch to the retail industry.
An estimated 186 million shoppers bought something online or in person from Thanksgiving to Cyber Monday, down from 190 million a year ago. The amount of money consumers spent fell by 14 percent – from an average of $362 last year to $312 this year, according to figures from the National Retail Federation.
Perhaps anticipating the slump, retailers are pivoting their operations in order to survive, according to UMass Lowell experts available for interviews.
“Retailers with significantly more capital on hand such as the ‘big-box’ stores are poised to ride out the holiday season, as they have used that capital during the pandemic to make the necessary logistical and promotional adjustments to reach consumers,” said Spencer Ross, an authority on the digital marketplace and shopper behavior. “Retailers with less capital have seen (Paycheck Protection Program) loans and other economic stimuli dry up and are otherwise struggling to make the same necessary investments, while at the same time, needing to offer promotional discounts to compete with the larger stores.”
But there have been bright spots.
“One interesting highlight has been the #BuyBlack hashtag, which, in some cities has been an effective way of using the consumerism of Black Friday, combined with the interest in social justice and supporting Black-owned businesses to help these small ventures,” Ross said.
Other adaptions in the industry are afoot, according to Scott Latham, a business strategy expert.
“Black Friday is so 20th century. Better deals will be had closer to Christmas and for consumers who can play the whole ‘I-forgot-your-gift-I’ll-mail-it-after-Christmas’ game, the best deals will be had then,” Latham said.
Consumers are showing themselves to be more practical in other ways, he added.
“We are seeing a dramatic shift in buying from clothing and luxury items to electronics and purchases related to home improvement,” Latham said.
Ross and Latham are faculty members in UMass Lowell’s Manning School of Business. To arrange an interview with any of them via phone, email, Zoom or another platform, contact Nancy Cicco at 978-934-4944 or Nancy_Cicco@uml.edu or Christine Gillette at 978-758-4664 or Christine_Gillette@uml.edu.