Friday, March 29

The Quad: COVID-19 means a different kind of Black Friday is in store for shoppers



Black Friday is notorious for its good deals, long lines and enthusiastic shoppers. But with COVID-19 cases on the rise, the day that many wait for all year may look different from past seasons.

Even with some components of this shopaholic holiday experiencing changes, retail experts predict that for the most part, the popularity of Black Friday will continue this year. The National Retail Federation predicted that the average amount of spending on gifts will only decrease from last year’s numbers by $9 per shopper as consumers attempt to normalize some aspect of their celebrations.

The hype surrounding Black Friday has only been growing within the past years, but for something so commonly associated with the gift-giving holiday season, the origins of Black Friday are not as cheerful.

Philadelphia police used the term Black Friday in the 1950s when referring to the annual mayhem they endured on Thanksgiving weekend during the Army-Navy football game. Large crowds of tourists were known to aggravate the police while shoplifters targeted retailers.

After all this time, Black Friday is still known for the chaos that it entails. In past years, patrons have been injured by stampedes, pepper spray, shootings, car accidents and brawls on their quest to hunt for deals.

Despite all this mayhem, why do millions of Americans continue to participate in this event?

Though good deals are certainly an incentive for some, senior economist for the UCLA Anderson Forecast Leo Feler explained that Black Friday itself has become something of a tradition.

“Usually when you see people camping outside to get to a store, they’re not doing it by themselves,” Feler said. “They have set up this whole experience of getting ready to go into a store that can actually be because the communal aspect of it is quite fun.”

Additionally, the experience of walking into a store, enjoying holiday decorations and rushing to limited-time deals adds a sense of excitement that online shopping lacks. In essence, Feler said that holiday shopping reminds us how social we are as humans.

“We like to do things in groups,” Feler said. “Going out on Black Friday and being in a crowded mall, for as much as people like to complain about it too, it’s also enjoyable.”

However, with the COVID-19 pandemic, the crowds have now been replaced with virtual shopping carts.

UCLA Anderson Forecast economist and business analytics professor William Yu said American spending habits have shifted from brick-and-mortar stores to e-commerce in response to the pandemic.

“Over the past several years, we have seen a greater increased percentage of e-commerce over total retail sales, but this year due to COVID-19, we’ve seen a rocket increase,” Yu said.

An analysis by Digital Commerce 360 showed that the first half of 2020 had a 30% increase in online sales when compared to the same period in 2019. The trend continued during the first 10 days of the holiday season as consumers spent 21% more on online goods than they did in 2019.

And now with California seeing a 110.8% increase in COVID-19 cases in the last two weeks alone, many retailers are focusing even more on online platforms while also extending their period of Black Friday sales.

Christopher Tang, a business administration professor, said an earlier period of sales appeals to the logistics behind supply management. Large distributors spread demand out over a longer period of time because they aren’t able to handle the demand of such saturated consumption in one day.

Though many local retailers were able to receive a Paycheck Protection Program loan from the government this year, Tang said Black Friday might not be a saving grace.

“Black Friday has a limited effect on (small businesses,)” Tang said. “They cannot afford to match the price and to run it, so a lot of the time, small stores rely on their loyal customers, customers from their neighborhood to support them.”

[Related: The Quad: The Paycheck Protection Program and how it has affected Westwood businesses]

In addition to this unprecedented year putting a strain on small businesses, the COVID-19 pandemic will also alter the usual Black Friday schedule.

Stores have announced plans to delay their opening until Friday morning, whereas a majority would normally open their doors at 4 p.m. on Thanksgiving day. Many retailers, such as Best Buy and Walmart, will open at 5 a.m., right in time for California’s stay-at-home curfew to end.

No matter how long the COVID-19 pandemic continues affecting in-person goods and services, Feler said retailers must be able to provide a positive shopping experience to incentivize more consumers to purchase from brick-and-mortar stores in the future.

Until then, shoppers will be waiting for this year’s Black Friday purchases to be shipped to their doors.

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