Core Insights - The "Black Friday" shopping season in the U.S. has seen record online sales of $11.8 billion, but rising prices and tariffs are dampening consumer demand [1][3] - The average online price of consumer goods has increased by 8% year-over-year, primarily due to tariffs on Chinese imports [4][5] - Consumer sentiment has shifted, with many shoppers prioritizing value and planning to reduce holiday spending due to economic uncertainty [6] Group 1: Sales and Pricing Trends - On "Black Friday," online sales reached a historic $11.8 billion, but the number of items purchased per transaction has decreased compared to last year [1] - Tariffs on Chinese goods have led to significant price increases, with toy prices rising from $20 to several dollars more due to a tax rate increase from 0% to 22% [3] - Despite apparent discounts during "Black Friday," many prices have merely returned to previous levels after earlier increases [3] Group 2: Consumer Behavior and Sentiment - A Deloitte survey indicates that holiday spending in Los Angeles is expected to decrease by 14% compared to last year, driven by pessimism about the economy [6] - Approximately 62% of surveyed consumers believe the economy will worsen in the next year, up from 34% the previous year [6] - Nearly 80% of respondents reported that almost all goods are experiencing price increases, leading to a reduction in planned holiday spending [6] Group 3: Retailer Challenges - Many small retailers are facing inventory shortages during the holiday season due to the impact of tariffs, with some companies opting to stick with Chinese suppliers despite high tariffs [4][5] - The uncertainty surrounding U.S.-China trade policies is forcing retailers to make difficult decisions between paying high tariffs or seeking more expensive alternatives [5] - The National Retail Federation forecasts a slowdown in holiday sales growth to between 3.7% and 4.2%, lower than the previous year's 4.3% [6]