In brief
This year's Black Friday proved to be a landmark event in online retail, with U.S. consumers reportedly spending $11.8 billion, marking a 9.1% increase from 2022. While in-store traffic fell by 3.6%, the shift towards online shopping reflects changing consumer behaviors. Analysts attribute the rise in spending to enhanced e-commerce platforms, although economic pressures like rising prices and employment fears loom large. Experts forecast continued holiday shopping momentum into Cyber Monday, despite overall spending growth slowing down.
Despite widespread economic uncertainty this holiday season, shoppers demonstrated a strong appetite for deals, leading to record online spending on Black Friday.
According to Adobe Analytics, U.S. consumers spent an astonishing $11.8 billion online on Black Friday, a 9.1% increase over the previous year. High traffic was observed between 10 a.m. and 2 p.m. local time, with transactions hitting $12.5 million every minute during that window.
On Thanksgiving Day, online spending also set a new record with $6.4 billion, reflecting a clear trend favoring digital shopping. Key categories in demand across both days included video game consoles, electronics, and home appliances. The influence of AI-powered shopping services and social media marketing was highlighted as a driving force behind consumer purchases.
Software company Salesforce reported even higher figures, estimating Black Friday online sales in the U.S. reached $18 billion, contributing to a global total of $79 billion. Additionally, the e-commerce platform Shopify indicated that its merchants achieved a record-breaking $6.2 billion in sales on the same day, with peak sales hitting $5.1 million per minute, particularly in cosmetics and clothing.
The shopping behaviors of consumers have shifted dramatically from traditional in-store sales events. The once chaotic Black Friday that saw shoppers line up at midnight has faded, as more buyers choose online deals, allowing them to shop at their leisure and take advantage of extended retail promotions.
This year's in-store customer traffic experienced a decline, with RetailNext reporting a 3.6% drop compared to last year. RetailNext’s global manager of advanced analytics, Joe Shasteen, noted that while shopper caution persists, they still return for significant sales events, illustrating a nuanced approach to holiday shopping.
Looking forward, experts expect substantial continued spending through the holiday weekend, projecting U.S. shoppers to spend an additional $5.5 billion on Saturday and $5.9 billion on Sunday, culminating in an estimated peak of $14.2 billion on Cyber Monday.
However, this uptick in spending occurs amidst rising prices influenced by tariffs imposed on foreign imports and concerns over job security. Despite a notable increase in spending, Salesforce found that shoppers purchased fewer items overall, with a 2% decrease in items at checkout and a 1% decline in order volumes.
The National Retail Federation forecasts that total holiday spending in the November-December period will exceed $1 trillion for the first time, with growth expected to be slower than previous years. Factors contributing to this cautious optimism include rising credit card debt and increased use of 'buy now, pay later' plans among shoppers.
