JACKSONVILLE, Fla. – In the next 48 hours, like clockwork, shoppers are expected to flock to stores in hopes of scoring those great Black Friday deals. But this year comes with the added pressures of record inflation.
Economist Joe Krier with Tidal Flow Trading said how shoppers respond to holiday shopping this season will be a test to see what next year looks like.
Paying more at the grocery store and at the pump has sadly become the norm with 8% inflation.
So, what does that mean for Black Friday shopping this year?
Krier said it’s anyone’s guess.
“The economy overall is in a transition phase from strong growth right to a potential recession next year. Nobody really knows how anyone is going to behave at the retail shops,” Krier said.
Even though it’s hard to predict, Krier said, the polls he’s watching show people are planning to shell out more money this year. But they’ll get the same amount or fewer items.
He also pointed to more online shopping and retailers struggling to get seasonal help in their stores. What does this mean for shoppers? Longer lines.
If you plan to use your credit card for your Black Friday shopping, you might want to consider switching to cash or using a debit. That’s because interest rates are so much higher this year.
Krier reminds shoppers that credit card debt is the worst kind you can possibly have.
“It’s the highest interest rate around. So, if you can’t afford to pay cash for it, you’re better off getting creative and doing something different,” Krier said.
Krier said what people do on Black Friday and beyond will be quite telling.
“The estimates are that inflation drops back to 3% or 4% by next year. This is thought to be the turning point,” Krier said. “Predictability is tough this holiday season, but it will also be very useful as far as setting ourselves up and seeing how next year is going to go.”
Krier also said even though supply chain issues aren’t as much of a concern as they were last year, they can still make it hard for certain retailers to get the products they need. So, if you’re looking ahead to Christmas shopping, it might be a good idea to do it now.