Inflation could ruin Black Friday for retailers — but it’s good news for you

Due to higher inflation (opens in new tab) and tightening budgets, holiday shoppers are buying fewer gifts than they did last year. In fact, projected holiday sales are only expected to be up 6% to 8% (opens in new tab) from last year, a decline when taking into account the 8.2% rise in inflation. 

This lack of demand has been a problem for many retailers, a major shift from last year. While previously stores struggled to keep items in stock, they’re now sitting on an excess of inventory. Considering Americans are already spending less on non-essential items like electronics and clothing, this has resulted in a severe imbalance of products. More and more retailers are facing diminished profits and lack of storage space as new products keep coming in, but not out. Target lost more than 34% (opens in new tab) of its stock due to inventory issues, while Nike’s fell 13% in one day back in September for similar reasons.

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