'Beulpeu' Shopping Also Online... Record High Purchase Amount

Discount Rates Decrease
Promotion Focus Strengthened Online Due to COVID Impact

[Asia Economy New York=Correspondent Baek Jong-min] As the Thanksgiving holiday shopping season arrives, it has been confirmed that American consumers actively utilized online purchases. However, the discount rates are not as high as before, so it seems consumers will not have a satisfactory shopping experience.

A consumer is moving a large Samsung Electronics TV purchased for Black Friday.
[Image source=EPA Yonhap News]

CNBC reported on the 27th (local time), citing Adobe Analytics, that online shopping spending on Thanksgiving Day surged 21.5% from last year's $4.2 billion to $5.1 billion (about 5.6 trillion KRW).

This is the highest level ever recorded for online shopping on Thanksgiving Day.

The U.S. retail industry has prepared discount events centered on online sales amid the COVID-19 pandemic.

Large offline retailers also attempted to expand online sales, fearing crowds of customers. The discount period was applied for a long time starting before Black Friday to prevent a sudden surge in deliveries.

The National Retail Federation (NRF) also forecasted that retail sales (excluding automobiles, gas stations, and restaurants) for the year-end season from November to December this year would reach $755.3 billion to $766.7 billion, an increase of 3.6% to 5.2% compared to last year. This exceeds the average annual growth rate of 3.5% over the past five years.

The association also stated that non-store sales, including online shopping, are expected to increase by 20% to 30% compared to last year.

The discount rates for this year’s year-end shopping season are understood to be lower than in previous years.

An official from the home appliance industry told Asia Economy in a phone interview, "Demand for large TVs and home appliances exploded this year, so the scale of Black Friday discounts is not large."

The Wall Street Journal (WSJ) also reported that famous clothing retailers have reduced both the discount rates and the discount periods for the year-end shopping season.

WSJ analyzed that the reason for the lower discount rates on famous clothing and other items compared to previous years is due to significantly reduced inventory caused by the COVID-19 pandemic.

WSJ reported that the reason for the lack of large-scale discounts is that major department stores have gone bankrupt one after another due to the COVID-19 pandemic, and since last summer, they have been clearing inventory and not placing new orders.