Black Friday, which falls on November 29, this year, is a popular shopping festival. It is celebrated on the day after Thanksgiving in the US.
According to a survey conducted by the National Retail Federation (NRF), more than 165 million people are planning to spend a total sum of around $730 billion during this weekend shopping season.
It is a crucial time for retailers shops as they expect to increase their volume of sales during these festive days by providing heavy discounts and offering many incentives to the customers.
Online Shopping: A Setback for Small and Traditional Retailers
However, except for big retailers such as Walmart and Target, this years’ weekend shopping is going to hit lower sales than last year for small and traditional departmental stores.
As reported by Macy’s Inc, the earnings of the retailers are forecasted to be around $ 0.01 this year as compared to $ 0.27 of 2018.
Buying products from online sellers is a key reason for the lower sales of retailers. Therefore, the traditional concept of Black Friday is losing its importance in contemporary American society.
The NRF President and CEO, Matthew Shay explains,
“The Black Friday weekend has become a five-day event with consumers’ spending money in stores, supporting local small businesses, and online with their mobile devices and computers.”
US-China Trade Deal and Its Impact on Retailers
The aftermath of trade policies of the US-China deal, which will be finalized on December 15, 2019, is increasing the worries of the retailers.
The deal will focus on the existing tariffs structures between the two countries. However, Washington and Beijing have different approaches to the deal.
At present, the US’ imposition of trade tariff against China is about $ 500 billion; whereas, Chinese’ imposition on the US is $ 110 billion.
China wants Washington to wave off its $ 500 billion tariffs while the US wants Beijing to open up markets and to respect the legal framework of intellectual property rights.
The US President, Donald Trump has already threatened to impose more tariffs on China if it fails to comply with the conditions set by the US Government.
The Trump Administration is likely to revise the tariffs regulations and impose more tariffs on Chinese imported products, especially electronics and toys, which will negatively impact the retailers.
I’m Roshan, a journalist, blogger and music lover. I like covering global news related to finance, business, and technology. Focusing on the collection of true and reliable information, I rely on working by conducting interviews with business leaders and talking to the inside sources of companies.
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