Inflation hovers over shoppers seeking deals on Black Friday

Black Friday shoppers hit the stores as inflation bits

More than one hundred million people will be pulling out their wallets from now through cyber Monday, but elevated prices for food, rent, gasoline and other household costs have taken a toll on shoppers.

NEW YORK - More than two years after the start of the pandemic the Queens Center Mall in Elmhurst was packed with Black Friday shoppers, as millions of Americans nationwide begin buying gifts for the holiday season.

"It’s amazing to see everyone coming out again," said Elliot Yusupov, a manager at Fabulous Optical. "Everyone wants to shop. Everyone is in a good mood."

According to the National Retail Federation, 166 million people plan on shopping Black Friday through Cyber Monday, but that doesn't necessarily mean they're buying.

"We came here to Macy's to try to find a good deal," said Hesham Sobohim, a Black Friday shopper. "There’s nothing, because everything is very expensive."

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People shop at Macy's department store during Black Friday in New York City on November 25, 2022. (Photo by Yuki IWAMURA / AFP) (Photo by YUKI IWAMURA/AFP via Getty Images)

This year consumer prices are up by nearly 8%. According to the Bureau of Labor Statistics, items that cost you $100 last year now cost $114.

National retailers are being cautious about projecting their sales this year. While they want to see a spike, they know inflation is hitting consumers hard and many people are opting to spend their money on their needs, not their wants. Meanwhile, consumers are as patient as ever, holding out for the bigger and best deals.

But consumer experts warn, goods cost more money. So even with a big sale, you're not saving money.

Shoppers wait for the doors to open during the Black Friday, an informal name for the Friday following Thanksgiving Day, at the Best Buy in New York, United States on November 25, 2022. (Photo by Fatih Aktas/Anadolu Agency via Getty Images)

"And although retailers are really motivated to offer sales and coupons to get people out to shop," said Andrea Woroch, a money-saving expert, "I don't think we're going to see these huge massive deals you're just going to see more frequency of deals."

While buying power is lower, morale is higher this holiday season, as people get back into the pre-pandemic routines. The larger number of shoppers may get retailers into the black, but consumers are seeing red.

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This year’s trends are a contrast to a year ago when consumers were buying early for fear of not getting what they needed amid supply-network clogs. Stores didn’t have to discount much because they were struggling to bring in items.

Early shopping turned out to be a fleeting trend, said Rob Garf, vice president and general manager of retail at Salesforce, which tracks online sales. People this year are holding out for the best bargains, and retailers responded this week with more attractive online deals after offering mostly lackluster discounts earlier in the season.

The average discount rate in the U.S. across all categories online was 31% on Thanksgiving, up from 27% the previous year, according to Salesforce data. The steepest discounts were in home appliances, general apparel, makeup, and luxury handbags.

Macy’s Herald Square in Manhattan, where discounts included 60% off fashion jewelry and 50% off select shoes, was bustling with shoppers early Friday.

The traffic was "significantly larger" on Black Friday compared to the previous two years because shoppers feel more comfortable in crowds, Macy’s CEO Jeff Gennette said.

He said that bestsellers from Macy’s online sale, which started last weekend, included 50% off beauty sets. Last year Macy’s, like many other stores, had supply chain issues and some of the gifts didn’t arrive until after Christmas.

"Right now we are set and ready to go," he said.

The Associated Press contributed to this report.