A recent report by the NRF implies a tremendous market opportunity available to gift card merchants. The NRA forecasts record breaking retail shopping on Thanksgiving weekend. Merchants that enable technology solutions for consumers to purchase gift cards on easy to use gift card platforms are well positioned. There are many deals to be had over Thanksgiving, Black Friday and Cyber Monday. Like they say, records are made to be broken.
Great Expectations for Shopping on Thanksgiving Weekend
“WASHINGTON – November 15, 2019 – Retailers are preparing for one of the busiest shopping weekends of the year with an estimated 165.3 million people likely to go shopping on Thanksgiving Day through Cyber Monday. “The tradition of Thanksgiving weekend holiday shopping has become a five-day event with consumers spending money in stores, supporting local small businesses, and online with their mobile devices and computers,”
NRF President and CEO Matthew Shay said. “Even as people are starting to purchase gifts earlier in the season, consumers still enjoy finding good Thanksgiving deals and passing time shopping with family and friends over the long holiday weekend.”
“We expect the biggest increase in potential shoppers for Thanksgiving Day this year.” -NRF
Throughout the course of the holiday weekend, 39.6 million consumers are considering shopping on Thanksgiving Day, 114.6 million on Black Friday, 66.6 million on Small Business Saturday and 33.3 million on Sunday. The shopping weekend will wrap up on Cyber Monday, when 68.7 million are expected to take advantage of online bargains.
Shay said younger consumers are significantly more likely to shop over the Thanksgiving weekend. Among those ages 18-24, 88 percent say they are likely to shop and particularly enjoy the social aspect. Similarly, 84 percent of those ages 25-34 plan to shop. That compares with 69 percent of holiday shoppers overall.
Of those planning to shop, there is an almost even split of people who plan to start their shopping in-store (47 percent) compared with those who plan to start online (41 percent). Those under 25 are even more likely to say they expect to start shopping in-store (52 percent).
“We expect the biggest increase in potential shoppers for Thanksgiving Day this year,” Prosper Insights Executive Vice President of Strategy Phil Rist said. “We anticipate that people may head to stores if they are open or shop from their phones while watching football.”
The top reasons consumers are planning to shop include:
- The deals are too good to pass up (65 percent)
- Tradition (28 percent)
- It’s when they like to start their holiday shopping (22 percent)
- It’s something to do over the holiday (21 percent)
- It’s a group activity with friends/family (17 percent)
For consumers who do not plan to shop, more than half (53 percent) say something could convince them. The top reasons given that would change their minds are a sale or discount on an item they want (26 percent), if a family member or friend invites them to shop (12 percent), if they could be sure the items they want are available (11 percent) or a free shipping offer (11 percent).
NRF’s annual forecast estimates that holiday retail sales in November and December will be up between 3.8 percent and 4.2 percent over 2018 for a total of between $727.9 billion and $730.7 billion.
The survey of 7,917 adult consumers’ Thanksgiving weekend plans was conducted October 31 through November 6 and has a margin of error of plus or minus 1.2 percentage points.”
The National Retail Federation, the world’s largest retail trade association, passionately advocates for the people, brands, policies and ideas that help retail thrive. From its headquarters in Washington, D.C., NRF empowers the industry that powers the economy.
Our thanks to our partners at the National Retail Federation for the information and insights made available through this press release.
This blog post is a reprint of the press release posted by the National Federation of Retailers.