Black Friday Shoppers in the US Break Online Spending Record
According to a report by Adobe Analytics, Black Friday shoppers in the US spent a record-breaking $9.8 billion online, providing a glimmer of hope for retailers who were facing lackluster sales forecasts for the holiday season.
The surge in online sales on Black Friday was driven by high demand for electronics, smartwatches, TVs, and audio equipment, resulting in a 7.5% increase compared to the previous year. Consumers also utilized buy-now, pay-later options, which saw a significant 72% increase from the week before Thanksgiving, allowing them to stretch their budgets further.
This year’s impressive sales figures mark a recovery from the previous holiday season, which was plagued by high inflation and resulted in heavy discounts by retailers to clear excess inventory. With pandemic-era savings dwindling and interest rates remaining at a 20-year high, holiday shopping has become a crucial indicator of US consumer resilience.
According to Salesforce Inc., US online sales experienced a 9% year-on-year growth, driven by the purchase of footwear, sporting goods, health, and beauty products. The biggest discounts were observed in clothing, home, and beauty categories.
As companies await slower brick-and-mortar data, online sales leading up to Cyber Monday on November 27 provide an early indication of holiday season performance. However, initial forecasts for November and December suggest dismal sales growth.
Salesforce predicts a meager 1% growth in online sales during this period compared to 2022, the slowest pace in at least five years. Similarly, Adobe expects revenue to grow by only 4.8%, significantly lower than the pre-pandemic average annual rate of 13%. The discrepancy in numbers is attributed to the different transactions analyzed by each company.
On a global scale, Canada-based e-commerce marketplace Shopify Inc. reported a 22% increase in Black Friday sales, with clothing, personal care, and jewelry leading the way.
