Retailers Navigate Cautious Black Friday Amid Holiday Challenges

Major retailers are gearing up for Black Friday with interactive products and experiences but approach the season cautiously due to a shorter holiday period and high prices. Despite plans to entice with discounts and exclusive offerings, holiday sales growth is expected to be slowest since 2018.

To attract shoppers this Black Friday, major retailers are unveiling interactive products and experiences. Highlights include Ray-Ban augmented-reality glasses and extra-large TVs at Best Buy, alongside new spa services at Nordstrom. However, a shorter holiday season has prompted retailers to stock basic favorites like Nike fleece clothing.

Nordstrom, hosting virtual and in-store events, anticipates slower growth this season, resonating with the cautious sentiment echoed by Dick's Sporting Goods CEO Lauren Hobart. Retailers like Best Buy and Abercrombie are making strategic inventory adjustments, prepping for a holiday period with fewer shopping days.

Price pressures persist across a wide array of goods, potentially compelling consumers to seek discounts or opt for gift cards. Retailers anticipate selective consumer spending, with deep discounts necessary for non-essential merchandise. Investment firms and analysts warn that without enticing offers, shoppers may hold back on holiday purchases.

(With inputs from agencies.)