Amazon has kicked off its Black Friday shopping deals a week earlier in an effort to kick start consumer spending ahead of the lucrative holiday period.
Traditionally, Black Friday has marked the beginning of the holiday shopping season, with retailers offering significant discounts and promotions to attract shoppers.
In recent years, however, many retailers have started to launch their Black Friday sales early, sometimes even days or weeks in advance.
The concept of Early Black Friday allows consumers to take advantage of discounted prices and special offers ahead of the official Black Friday, providing an extended period for holiday shopping.
That said, industry leaders are forecasting a potentially less robust holiday season compared to previous years.
In a break from six consecutive months of growth, US retail sales fell 0.1% in October, a shift attributed in part to declining prices for gasoline and cars, as reported by the Commerce Department.
Although September's figures were revised upward from an initial 0.7% gain to a robust 0.9%, economists anticipate a slowdown in consumer spending in the final quarter of the year.
Despite the decline being smaller than expected, concerns arise as credit card debt and delinquencies rise, and average savings decrease.
However, while most retail categories experienced a drop in sales, online spending increased by 0.2%, and certain sectors, such as electronics and appliance stores, saw positive growth.
The figures, not adjusted for inflation, revealed a contrasting consumer sentiment, with recent data reflecting strong growth in spending amid rising costs for services.
As the holiday season approaches, the National Retail Federation anticipates a 3% to 4% increase in US holiday sales, signaling a potential slowing of spending compared to the previous year.
In its 3Q earnings report, Walmart reported increased caution among US consumers in their spending habits due to inflation and rising interest rates. CFO John David Rainey expressed concern over the somewhat uneven sales performance in the last two months, citing higher interest rates and diminishing household savings.
With Black Friday and Cyber Monday sales around the corner, analysts anticipate continued growth in the coming months, albeit more measured than in recent years.
The moderation in retail sales signals a potential slowdown in economic growth. For now, however, the consumer appears to be holding steady.