Despite Economic Uncertainty in the U.S., Black Friday Shopping Upticks in 2022

Despite Economic Uncertainty in the U.S., Black Friday Shopping Upticks in 2022

Commercial News » New York City Edition | By Michael Gerrity | November 29, 2022 8:33 AM ET

Based on brand new Retail Research by CBRE, Black Friday in the U.S. was off to a better-than-expected start for the 2022 Christmas holiday shopping season.

"The consensus from several CBRE-managed malls and shopping centers is that the 2022 holiday shopping season is off to a solid start," said Brandon Isner, CBRE Americas Head of Retail Research. "Shoppers gravitated to heavy discounts and to traffic-drivers like Santa visits and selfie-inspiring experiences, which we anticipate will continue to attract foot traffic throughout the season. Price inflation will remain a headwind for shoppers this season, so it's likely that discounts will play a sustained role in generating interest this season."

CBRE Retail Property Management surveyed personnel at 13 of the malls and outdoor, mixed-use centers that it manages across the U.S. and found the following regarding results from last weekend:

  • Centers reported traffic was up slightly compared to last year even though many retailers started their Black Friday promotions early.
  • As to be expected, heavy discounts (50%+ off on apparel) played a major role in driving traffic and sales on Black Friday; Retailers offering the steepest discounts consistently reported lines outside of the store.
  • The majority of retailers surveyed reported Black Friday sales exceeding their own forecasts and their 2021 results. Popular categories were electronics, home décor, jewelry, beauty and apparel.
  • Buy Now, Pay Later services were popular this year as consumers continue to feel the impacts of inflation and economic pressures.
  • Events, such as Santa meetings and holiday markets, as well as experiences like ice rinks and interactive photo opportunities not only generated traffic but also created buzz on social media.
  • Neither retailers or shoppers cited inventory shortages as an issue, indicating that adaptive strategies implemented by retailers and e-commerce companies, such as amassing deeper inventories farther ahead of the season, were successful.
  • The CBRE-managed retail centers are spread across the U.S., with seven in the West, three in the Midwest and Central U.S., and three in the East.

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