This will be the first year that demand is going to outpace supply, and that makes an impact on those huge sales that we usually expect on Black Friday.
Simon Siegel, the senior retail analyst for BMO Capital Markets, said, “What that means, is don’t expect too many discounts from a consumer perspective. Inventory is light, deals are going to be light as well. From a stock perspective, I think we should all expect sales may disappoint, but margins and profitability are probably going to be better than we’ve seen in a while.”
Short supply and high demand has already made big items, like the Playstation 5, hard to find. Another big change is the trend of buying “experiences” rather than things is going to diminish since most people are staying home.
With increased shopping taking place online this Black Friday, Amazon could see its sales increase by 20-30% to more than $200 billion. Meanwhile, small local businesses have taken a huge hit during the pandemic, and many people are looking to show their support and shop local this holiday season.