Black Friday sales have become a major event in the United States. But, the low-price trend and incentive-driven shopping holiday is now so big, that it’s seeped into the retail marketing structure of businesses all around the world. Panama is one of those countries. Since 2012, Panama has been adopting Black Friday traditions in their major retail outlets and shopping centers, and the results have been great. These days, despite only a few short years of existence, the Black Friday shopping craze is a major factor in the local economy. And as far as data goes, the numbers look to keep growing.
The economic impact in Panama
The biggest beneficiaries of Black Friday in Panama are the capital city’s major shopping centers. Places (malls) like Multiplaza, Multicentro, Metro Mall, and Albrook. These malls were early adopters to the discount-driven shopping day, and essentially modeled their strategy after the US chains: cut prices drastically, for a limited time, and drive bulk sales a month before Christmas. So far, it’s worked. Panama big chain stores and malls have been offering nearly 70% off sales for the past 3 years. They promote the sales weeks in advance, and market it as a shopping destination holiday, which works, considering Panama has 5 national holidays in November, and the month is largely considered a vacation period for many residents.
Stores that participate in the event extend their hours, and staff more employess to handle the surge, and often sell out of inventory marked specifically for the day. But the true economic impact is actually much bigger than the hard sales numbers that increase on that day. Panama, due to it’s affordable shopping, and even more affordable Black Friday holiday, has become a shopping destination for foreigners over the late-November weekend. In fact, the week leading up to Black Friday, and the weekend beginning on Friday boost hotel occupancy by nearly 20%.
Driving holiday sales in a growing market
Panama’s retail market is hot, but it’s also oversaturated. This is a normal trend in growth markets, especially ones with easy access to international tourism and shipping. Panama fits both of these criteria, and as a result, needs to push volume-based sales frequently, to keep in the black. Black Friday does just that. It draws both tourists and locals into the shopping centers to volume buy, which kick-starts the Christmas shopping season. Many people from all over the region spend large amounts of money in Panama, on hotels, restaurants, tours, and transportation, culminating ultimately into retail shopping sprees on the Black Friday Holiday. The ancillary benefits from the retail holiday are spread throughout the city’s economy, which is crucial this time of year.
Panama has a strong currency, the US Dollar, along with low-cost imports and low tariffs. This all makes for the perfect combination of bargain discount sales, and shopping holidays. And it’s not just foreigners who are taking advantage of it. Locals will often take time off work to take advantage of Black Friday deals, as well as spending the majority of their seasonal savings in one weekend, before the big push for holiday sales starts to roll in December.
Like it or not, Black Friday is a huge success in Panama. Whether it can sustain itself long-term or not is uncertain, but more than likely. As long as the economy keeps building, retailers will find creative ways to take advantage of it. Right now, Black Friday’s got it.
