November 15, 2017
Shoppers looking for the biggest savings on Black Friday would be wise to visit department stores, according to a WalletHub report released earlier this month.
Department stores like Kohl's, J.C. Penney and Sears will provide shoppers with a higher average discount than popular Black Friday destinations like Target, Walmart or Best Buy.
WalletHub analysts examined nearly 10,000 Black Friday deals from 35 of the biggest U.S. retailers. Department stores fared the best.
Kohl's and J.C. Penney will offer consumers the largest average discount – 66.3 percent. They join Belk and Stage-owned department stores, such as Peebles, as the only retailers offering average discounts of at least 60 percent.
By contrast, online retailer Amazon fell just a shade under the average discount being offered by retailers – 37.1 percent. So, too, did Target and Walmart.
Bass Pro Shops offered the smallest average discount, at 20.8 percent, falling just below Costco, Ace Hardware and Cabela's.
The table below shows 15 common retail outlets in the Philadelphia region, as well as their average discount on Black Friday deals. A complete list of the retailers reviewed by WalletHub can be found here.
|Office Depot and OfficeMax||34.5%|
Many retailers, including Target and Walmart, have already launched holiday shopping deals online, as they aim to stave off their competition.
"One simple reason is that more and more people are now electing to stay at home than go to the store and go through all the hassle," said Subodha Kumar, a marketing professor at Temple University's Fox School of Business. "If they're not getting a discount, they'll go to a different online store."
Online retailers also can encourage consumers to spend additional money by putting a list of recommended items based on their purchasing history.
Similarly, as shoppers increasingly use mobile apps to access deals within bricks-and-mortar stores, Kumar said some retailers have begun using location-based technology to send specialized discounts to shoppers.
"When you're in the store, you can connect to the WiFi of the store itself," Kumar said. "They know your exact location. They can incentivize you in real time based on where you are inside the store."
Despite shifting marketing strategies, Kumar said Black Friday discounts have mostly remained stagnant over the years.
"What we have found is that discounts themselves have not gotten higher or lower," said Kumar, who has researched various retail marketing tactics. "The discounts have shifted – you'll see more and more discounts online than in the stores."
The WalletHub report broke Black Friday deals into 11 categories, including apparel, computers and phones, consumer electronics and jewelry.
Shoppers looking to purchase computers and phones should seek out a Stage-owned store – Peebles, Bealls, Goody's and Palais Royal. Their 64.4 percent average discount on computers and phones tops competitors by 16 percentage points.
Stage stores also are offering the highest average discount on consumer electronics, at 58.4 percent. Belk and True Value also are offering more than 50 percent off.
As for apparel, department stores like Shopko, Stage stores, J.C. Penney and Sears are offering the highest discounts on apparel.
Consumers also will find significant jewelry discounts at department stores. Kohl's, Shopko, Sears, J.C. Penney and Stage stores are all offering average jewelry discounts of at least 70 percent.