Online retail continues to dominate consumer spending during the holiday season, as evidenced by record levels of ecommerce sales on Black Friday. According to data collected by Adobe Analytics, online sales in the United States reached a monumental $10.8 billion on the day after Thanksgiving, reflecting a significant 10.2% increase from the previous year. This figure marks the highest amount of online spending for Black Friday since Adobe began tracking these transactions.
Vivek Pandya, lead analyst at Adobe Digital Insights, highlighted the significance of crossing the $10 billion threshold, stating, “Crossing the $10 billion mark is a big ecommerce milestone for Black Friday, for a day that in the past was anchored towards in-store shopping.”
Despite the impressive online sales figures, in-person shopping experienced a decline, with metrics indicating an 8% drop in store traffic compared to last year. Sensormatic Solutions, a firm that monitors retail store visits during the holiday shopping season, reported an 8.2% decline in foot traffic, reversing a trend of growth observed in the years following the pandemic's peak impact. For the week surrounding Thanksgiving, in-store visitor numbers decreased by 3.9%. Grant Gustafson, head of retail and analytics at Sensormatic Solutions, commented that the earlier promotions during the Black Friday shopping week likely contributed to the softer turnout, stating, “Some of the weeklong Black Friday extended promotions have really led to a little bit of a softer day of traffic than anticipated.”
Further supporting this trend, RetailNext found that nationwide store traffic dropped by 3.2% compared to the previous year, with extreme weather conditions in the Midwest resulting in a notable 7% decrease in that region specifically. In contrast, the shift towards digital shopping habits continues to gain momentum. “And with consumers getting more comfortable with everything from mobile shopping to chat bots, we have tailwinds that can prop up online growth for Black Friday moving forward,” noted Pandya.
The online shopping surge was evident throughout the day, with Americans reportedly spending an average of $11.3 million online every minute between 10 a.m. and 2 p.m., according to Adobe. Data from Salesforce reveals that global spending reached an impressive $74.4 billion on Black Friday, with U.S. online sales totalling $17.5 billion, which is a 7% increase from the previous year. Notably, over half of these online purchases were made via mobile devices, further underscoring the ongoing digital transformation in consumer behaviour.
Emerging technologies such as AI-powered chatbots also played a significant role in influencing purchasing decisions, with interactions through these platforms increasing by a staggering 1,800% year-over-year on Black Friday.
Adding to the ecommerce boom, Shopify reported global sales of $5 billion on Black Friday, amounting to an average of $4.6 million per minute during peak shopping times. Brands utilizing the Shopify platform experienced marked sales increases. Eric Girouard, founder and CEO of Brunt Workwear, shared that his brand recorded $2.5 million in online sales that day, reflecting an 85% increase. Similarly, Paul Jauregui, co-founder of BK Beauty, noted a 35% rise in sales on Black Friday compared to the previous year, attributing part of this success to a successful live shopping event on TikTok.
The spread of holiday shopping into a longer-volume period appears to have diminished the crowds traditionally associated with Black Friday, although some retail spaces reported unexpectedly robust customer turnout. Westfield Garden State Plaza in Paramus, New Jersey, one of the largest malls in the New York metro area, witnessed crowds reminiscent of its pre-pandemic levels. Senior General Manager Wesley Rebisz remarked on the significant presence of Gen Z shoppers, noting, “They turned out very strongly in the morning and stayed the whole day.”
As businesses navigate these shifting consumer behaviours and patterns, the continued integration of technology into retail remains a central focus, influencing everything from marketing strategies to operational practices.
Source: Noah Wire Services