Expect good Black Friday deals this year because retailers are overstocked, experts say

Posted at 6:13 AM, Nov 25, 2022
and last updated 2022-11-25 08:05:33-05

(WXYZ) — Black Friday is here and that means some shoppers are already lining up outside some of the popular spots here in metro Detroit and around the country.

But this year, inflation is having an impact on how much people can and are willing to spend on gifts for family and friends.

"I'll probably be spending a little less this year just because of that fact. But it's still going to have the same outcome," shopper Ricardo Murry said.

"I'll have to get in touch with my creative side and start making things for like Christmas as opposed to coming out here and spending additional money that I really don't have," shopper Denise Alexander-Williams adds.

According to Deloitte, shoppers will be spending on average $205 for gifts this year. Last year, the average was $190. That's an 8% increase since 2021.

64% of shoppers say they'll be hitting the stores for those Black Friday deals this year compared to 56% in 2021.

Many shoppers will rely on credit payment options or the buy now pay later to stretch their holiday budgets.

"Haven't gotten it done yet, but after-pay has been amazing so I have been utilizing that so some things I can pay with after-pay," shopper Brianna Patman said.

Kristin McGrath from RetailMeNot says retailers know that inflation is impacting shoppers' bottom line.

"We're seeing this year's Black Friday deals being pretty good as far as discretionary purchases go because retailers know they need to sweeten the deal," she said.

Mcgrath adds that inventory is also up for the major box store retailers.

"Retailers have a lot of overstocked inventory, especially when it comes to small appliances, home goods, clothing, televisions. Everything people were buying like crazy during the pandemic is finally on shelves. People want it less now and retailers want it out," she said.