Will the economic crisis affect Black Friday? Predictions from Dealnews.com

Apple on Black FridayBlack Friday has traditionally been one of the busiest and most frantic shopping days of the year but with Christmas sales down in 2007 and the economy looking like a leftover fruitcake, many people are wondering if Black Friday can live up to past performances.

To better grasp the severity of the situation I enlisted the help of Dan de Grandpre, the current CEO of Dealnews.com. Dan is one of the most qualified individuals I know to assist in this as he has over 12 years of deal hunting experience as well as the ability to keenly identify industry trends. The Dealnews.com CEO backs up his team's experience surrounding retail sales and promotions by boasting that Dealnews.com has saved visitors hundreds of millions of dollars.

Black Friday needs only three things to be successful: retailers with amazing deals, willing consumers and money. Without any one of these items Black Friday ceases to be the spectacle that retailers and shoppers have come to know and love. In order to understand how the economy affects any of these three elements it is important to understand the relationship between retailers and consumers.


Scenes from Holidays Past

    SHANGHAI, CHINA - DECEMBER 23: (CHINA OUT) People take pictures in front of light decorations featuring reindeers installed for the upcoming Christmas at a shopping center on December 23, 2007 in Shanghai, China. Western traditions such as Christmas Day, Valentine's Day and Halloween have become increasingly popular among Chinese youth, as shops, restaurants and bars look to use such calendar dates to promote their businesses. (Photo by China Photos/Getty Images)

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    NEW YORK - DECEMBER 20: Skaters pass beneath the Rockefeller Center Christmas tree December 20, 2007 in New York City. With Christmas five days away, merchants are hoping last-minute shoppers will help them rebound from a slow holiday shopping season. (Photo by Mario Tama/Getty Images)

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    NEW YORK - DECEMBER 20: Visitors view the holiday displays at Rockefeller Center December 20, 2007 in New York City. With Christmas five days away, merchants are hoping last-minute shoppers will help them rebound from a slow holiday shopping season. (Photo by Mario Tama/Getty Images)

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    NEW YORK - DECEMBER 20: Visitors photograph the Rockefeller Center Christmas tree is seen December 20, 2007 in New York City. With Christmas five days away, merchants are hoping last-minute shoppers will help them rebound from a slow holiday shopping season. (Photo by Mario Tama/Getty Images)

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    NEW YORK - DECEMBER 20: Shoppers walk past the Rockefeller Center Christmas tree December 20, 2007 in New York City. With Christmas five days away, merchants are hoping last-minute shoppers will help them rebound from a slow holiday shopping season. (Photo by Mario Tama/Getty Images)

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    NEW YORK - DECEMBER 20: Visitors walk past the Rockefeller Center Christmas tree December 20, 2007 in New York City. With Christmas five days away, merchants are hoping last-minute shoppers will help them rebound from a slow holiday shopping season. (Photo by Mario Tama/Getty Images)

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    NEW YORK - DECEMBER 20: A shopper looks at a sale item in Saks Fifth Avenue December 20, 2007 in New York City. With Christmas five days away, merchants are hoping last-minute shoppers will help them rebound from a slow holiday shopping season. (Photo by Mario Tama/Getty Images)

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    NEW YORK - DECEMBER 20: Visitors view the Christmas windows at Saks Fifth Avenue December 20, 2007 in New York City. With Christmas five days away, merchants are hoping last-minute shoppers will help them rebound from a slow holiday shopping season. (Photo by Mario Tama/Getty Images)

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    NEW YORK - DECEMBER 20: Shoppers and onlookers view the Rockefeller Center Christmas tree December 20, 2007 in New York City. With Christmas five days away, merchants are hoping last-minute shoppers will help them rebound from a slow holiday shopping season. (Photo by Mario Tama/Getty Images)

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    NEW YORK - DECEMBER 20: Shoppers are seen on Madison Avenue December 20, 2007 in New York City. With Christmas five days away, merchants are hoping last-minute shoppers will help them rebound from a slow holiday shopping season. (Photo by Mario Tama/Getty Images)

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While it is easy to assume that the retailers hold the majority of the power in this situation due to the fact that they set the sales and promotions, Dan was quick to point out that the source of power is with the consumer. Since we hold the money in this menage a trois of consumerism, we have the bulk of the power on Black Friday and in most retail transactions. Dan explained that, "If consumers exercise patience and don't participate in poorly priced sales then retailers will inevitably need to give up margin in order to sell their merchandise."

Since consumers have the power to wait even if the economy convinces retailers to hold back on spectacular deals for Black Friday this year, we can still expect to see retailers drop prices and offer sales before Christmas in order to make sales goals.

Despite the current state of the economy, the outlook for Black Friday is still good, and Dan predicts that we'll see low low prices on all kinds of consumer goods from computer equipment and HDTV's to power tools this year. Black Friday has come a long way from the first time I stood in line many years ago and it seems that every year a new store or industry hops into the retail smorgasbord with this year being no different.

Dan expects to see more couture and high end labels reaching out to consumers on Black Friday both online and in their brick and mortar stores as they experience the affects of a slowing economy. Labels such as Gucci, Kate Spade and Prada will likely have apparel, accessories and leather coats on sale this year. Shoppers can also expect to see even more deals online as early as Thanksgiving Day as retailers mirror many of their discounts online with free shipping which lets you sleep in and avoid the crowds!

The final thing to remember about Black Friday is that it is a shopping day which revolves around quantity rather than quality. This makes Black Friday the perfect time to follow the lead of the Dealnews.com staff and pick up memory cards and digital cameras or even a second TV for next to nothing. The fun part of shopping on Black Friday for Dan is that he doesn't know what he is going to end up with except to know that his gift closet will be filled up with many of the opportunistic buys that seem to surface on Black Friday.

Thankfully those of us looking for high quality merchandise can count on good deals later this year with high-end TV's and toys both getting better discounts in early December so stay sharp and remember to stay tuned to our additional BLack Friday coverage at WalletPop and to the deals that Dan and his team put together at Dealnews.com!

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Jia John

I user dealnew.com and http://dealpursue.com to find a best deals.

December 29 2013 at 8:55 PM Report abuse rate up rate down Reply