In brief
On Black Friday, U.S. consumers spent a record $11.8 billion online, an increase of 9.1% from last year. Sales trends indicate a preference for online shopping and a shift in consumer behavior, as shoppers spread their spending over longer periods despite rising prices and economic uncertainties. Retail experts warn that while spending remains strong, it may be influenced by changing consumer attitudes and external economic pressures.
NEW YORK — Despite wider economic uncertainty hovering over the holiday season, shoppers turned out in record numbers for Black Friday, spending billions both in stores and online.
According to Adobe Analytics, U.S. consumers spent an unprecedented $11.8 billion online on Black Friday, presenting a 9.1% increase from the previous year. Traffic soared particularly between 10 a.m. and 2 p.m. local time, with $12.5 million processed through online shopping carts every minute.
On Thanksgiving Day alone, U.S. online spending also broke records, reaching $6.4 billion. Categories like video game consoles, electronics, and home appliances experienced significant surges in sales driven by advancements in shopping technologies and social media advertising.
Salesforce estimated that nationwide Black Friday online sales totaled $18 billion, with Shopify reporting $6.2 billion in sales through its platforms. Top-selling categories featured cosmetics and clothing, reflecting a shift towards online shopping convenience.
Historically a hub for massive in-store traffic, Black Friday's essence is transforming. Many consumers prefer to make purchases from the comfort of home or take advantage of extended sales promotions. This shift resulted in a reported 3.6% decline in physical store traffic compared to last year, according to RetailNext.
Joe Shasteen from RetailNext highlighted the evolving shopping habits, stating that customers are more focused, often visiting stores with narrow objectives. Despite a decrease in in-store visits, Friday's decline was notably better than the preceding week's trends, suggesting shoppers remain engaged during key promotional periods.
Experts predict that holiday spending will maintain momentum through the weekend, estimating $5.5 billion in additional spending on Saturday and $5.9 billion on Sunday in the U.S. The anticipated peak comes on Cyber Monday, potentially hitting $14.2 billion.
However, consumers are navigating rising prices, partly due to tariffs imposed on foreign imports that have affected both businesses and households. Although spending increased, data from Salesforce indicated that shoppers purchased fewer items on Black Friday compared to last year.
The National Retail Federation projects that U.S. shoppers will collectively spend over $1 trillion during the November-December holiday season this year, marking a significant milestone. Still, the growth rate appears to be slowing down compared to previous years.
Amidst these factors, many shoppers are relying on 'buy now, pay later' plans, allowing them to defer holiday purchases amidst rising credit card debt and delinquencies on short-term loans.
