Thanksgiving weekend is my favorite time of the year. It’s a time for reflection and giving thanks,
family gatherings, and a chance to catch your breath before the year’s final Q4 stretch and the obligatory beginning of Q1. But Thanksgiving’s influence goes well beyond the dinner table and gathering with friends and family. Thanksgiving is a significant driver of the economy, carrying a major impact across food, entertainment, travel, and retail.
According to data from Statista, the period from Thanksgiving to Christmas is a significant time for U.S. retailers. Historically, retail sales during this time have accounted for a whopping 26.8% of the total annual retail sales in the United States.
It's interesting to look at and learn from "the business acumen of Thanksgiving." Let’s dive into what makes this holiday such an economic powerhouse.
Food: Feast and Finances
The Thanksgiving holiday centers around the traditional Thursday meal of turkey, stuffing, sweet potatoes, cranberries, and pumpkin pies, and the food industry experiences a dramatic surge during the week before and the week after the holiday. Retailers and grocery chains focus on capturing consumer demand through promotions on traditional food products and loading up shoppers with lots of other purchases while they are in the spending mood. According to the American Farm Bureau Federation’s Annual Thanksgiving Survey, the average cost of a Thanksgiving meal for 10 people is estimated at $58.08 which is a little lower than last year. That feels a bit low to me as the survey probably forgot to factor in second helpings and the leftover take-home bags.
Travel: Planes, Trains, and Automobiles
Thanksgiving weekend is the busiest travel time in the U.S., with millions flying and taking to the roads. Airlines schedule extra flights to meet demand while prices tend to soar. According to AAA, they are expecting record travel in 2024 of over 80 million Americans traveling 50 miles or more. When driving, this will systemically boost gas usage, roadside food purchases, and hotel stays.
Entertainment and Media
Thanksgiving is synonymous with major television events such as the Macy's Thanksgiving Day Parade and of course the three NFL games. Network advertising revenue increases considerably as millions tune in. It’s a great opportunity for brands to target holiday audiences, setting the tone for the holiday shopping season.
In addition, you may have heard about several of the mega-budget movies that will be released for Thanksgiving like Wicked, Gladiator II, and Moana II. Each of these movies is projected to generate over $500 million in ticket sales
Black Friday and Cyber Monday
While Thanksgiving is about giving thanks, Black Friday and Cyber Monday is all about giving businesses record-breaking sales. In recent years, the Thanksgiving holiday has merged into the retail frenzy, with stores opening as early as Thursday evening. The National Retail Federation reports billions of dollars spent during Black Friday and its digital counterpart, Cyber Monday. Deals on electronics, apparel, and home goods drive a significant increase in consumer spending.
Corporate Strategy and Community Engagement
Thanksgiving is a trigger for many companies to begin their holiday marketing, spending billions on advertising and promotions. Coca-Cola for example has always used the holiday season to create winter imagery that includes polar bears drinking refreshing ice-cold Coke.
In addition to the accelerated marketing, Thanksgiving is also the trigger for corporate social responsibility campaigns. Many businesses spend money on community services, such as food drives or donations to charity, reinforcing a positive brand image.
Summary: The Business Acumen of Thanksgiving in Context
As you can see, Thanksgiving is more than just a holiday, it’s a powerful catalyst for economic growth. Beyond the turkey and traditions, industries like travel, retail, and hospitality, generate billions through increased spending.
From the entire Advantexe Team,
Happy Thanksgiving—and happy spending!
