Holiday sales season is in full swing! Some stores have opted out of door busters in favor of prolonged online sales. Convenience reigns supreme for many shoppers whether they’re on the hunt for a new family flat screen TV or a special gift for a special someone...even if it’s only at a 10% discount.
Sophia Hammerle spoke to USC students about how they get the best deals. Here’s the story.
Usually Black Friday conjures images of crowded stores, long lines, and fights over coveted merchandise. But as online shopping takes the lead, that image is changing. The COVID-19 pandemic launched online sales revenue to record levels. But the growth of online shopping appears to be a permanent change.
Online shopping revenue this past Friday reached 9.12 billion dollars, surpassing the record set in 2020. And today’s revenue from Cyber Monday is projected to be a record 11.2 billion dollars, according to Adobe Analytics. This growth is on par with consumer preferences.
Omar Salah-Eddine, a junior studying aerospace engineering at USC, says online shopping is preferable to waiting in long lines at stores.
OMAR SALAH-EDDINE: I used to do Black Friday and actually like wait out in line and do all that stuff. And then eventually I got over it. So much time, big waste. And I kind of enjoyed having dinner with my family over spending the entire night out in front of Target. Not a big fan.
Sasha Hussain is a junior majoring in health and human science. She went shopping in-person on Black Friday but admitted that the cost of transportation makes online shopping more accessible.
SASHA HUSSAIN: I got one thing from Lululemon and then we came back. Like we only bought one thing total from the both of us, and we just Ubered back. We spent more money on the Uber than actually shopping.
HUSSAIN: I think online shopping can be convenient because you don’t have to go in person and you don’t have to pay for an Uber, and it takes less time.
Despite online shopping’s undisputed rise in popularity, it retains certain downsides. LeeAnna Villarreal, a junior majoring in journalism, said it’s less favorable to buy clothes online.
LEEANNA VILLAREAL: It’s convenient, and I can stay in bed and shop. But the only downside of that is I can’t really order most things because I don’t know if it’ll fit, and I have to return it and it’s a whole thing.
When individuals do choose to shop online, many turn to the online-shopping giant Amazon. Despite consumer concerns over the company’s environmental and labor practices, Amazon continues to top charts as the most-visited online shopping website in the U.S.
One of these people is Anthony Slade, a junior studying journalism.
ANTHONY SLADE: I do feel a little guilty, but I would say Amazon’s probably my number one just because it’s so convenient and they have everything.
While this year’s projected revenue is on par with pre-pandemic levels, the rate of growth has actually slowed. In the three years prior to the pandemic, there was a consistent 20% growth in Black Friday online sales revenue from year to year. This year’s Black Friday revenue increased by only 2.4% from 2021.
Similarly, the projected revenue for Cyber Monday is only 5% greater than last year.
This slowed growth could be due to increased inflation. There is greater hesitancy to spend money, Omar Salah-Eddine explains.
SALAH-EDDINE: I know a lot of people are trying to hold on to their money kind of because of inflation and then kind of fearing a recession.
This is reflected in consumers’ mindsets, including that of LeeAnna Villarreal.
VILLAREAL: I haven’t really shopped as much as I have in the past just because everything’s more expensive.
Christopher Holmes Smith is a USC Annenberg professor and directs the media, economics, and entrepreneurship program. He explained why Americans are still spending this year, despite these concerns.
CHRISTOPHER HOLMES SMITH: Prior to the pandemic, the labor market was in a historically strong standpoint and we saw trillions of dollars flowed into the economy during during the pandemic. And all of that money has not yet been exhausted. People still have money to spend.
Smith said that these spending holidays also have significant cultural power to motivate spending.
SMITH: I still think that Black Friday and Cyber Monday still send behavioral signals to the average consumer... it still represents kind of like the true beginning of the holiday shopping season.
There’s still a few hours left this Cyber Monday to snag a Holiday gift for family and friends... or for yourself.
For Annenberg Media, I’m Sophia Hammerle.