Black Friday saw a significant increase in brick-and-mortar foot visitation and record online sales, indicating that consumers have shifted their approach to the biggest buying season.
Sensormatic Solutions, a provider of retail data, reports that Black Friday store visits increased by 2.9% compared to the previous year, despite decades of inflation.
Additionally, Thanksgiving Day store visits increased 19.7% compared to 2021, as more retailers opened their doors on Thursday.
Far fewer retailers are open on Thanksgiving than on Black Friday, so the increase is somewhat deceptive, according to Brian Field, senior director of global retail consultancy at Sensormatic.
“If I consider the prior few years when stores were open on Thanksgiving Day, I find that the mix of customers is so limited compared to even a typical Thursday,” Field said.
Field noted that the increase in in-store shoppers on Black Friday is a more accurate forecast of the remainder of the holiday season. Today for the rest of the weekend, he remarked, we anticipate favorable conditions. “A 2.9% increase is an excellent start to the holiday season.”
The National Retail Federation anticipates that holiday sales in November and December will increase by between 6% and 8% during the course of 2020, reaching between $942.6 billion and $960.4 billion. However, it is unclear at this time how much of the rise will be due to inflation rather than increased gifting. In October, inflation dropped marginally but still reported 7.7%, putting pressure on cash-strapped people.
The NRF reports that holiday retail sales have climbed by an average of 4.9% year over the past decade, with pandemic spending in recent years contributing for significant rises. Last year’s holiday sales totaled $889.3 billion, which was a record-breaking amount.
However, a significant portion of the rise is now attributable to consumers who buy with their fingertips.
More consumers than ever before choose to shop for Christmas deals on their cellphones during Black Friday online sales.
According to Adobe Analytics, Black Friday online spending reached $9.12 billion this year, up 2.3% from last year and surpassing the previous record of $9 billion set in 2020. Electronics, toys, and exercise equipment were the primary contributors to this increase.
This year, not only the amount spent online but also the manner in which consumers completed their purchases broke records.
48% of online sales were done via a smartphone, an all-time record for mobile shopping, up from 44% the previous year.
The data also provides insight into how consumers are coping with inflation-driven price increases, as the popularity of “Buy Now, Pay Later” plans has increased dramatically.
Last week, the overall number of buy now, pay later orders increased by 78% compared to the previous week. The revenue from these orders increased by 81% throughout the same time frame.
Vivek Pandita, lead analyst at Adobe Digital Insights, stated, “As Black Friday online spending set a new record, we’re also observing more prominent signs of a budget-conscious consumer.” This year, more consumers are embracing the Buy Now Pay Later payment method in order to purchase gifts for loved ones.
Financial concerns afflicted in-store consumers, with 42% indicating that the timing of discounts and promotions will influence their purchasing plans.
Field stated, “I don’t believe we posed that question in prior years.” This question was prompted by their assertion that finances played a significant role.
President Joe Biden, who spent an hour and a half shopping on upscale Nantucket Island with the first lady, Jill Biden, his daughter Ashley Biden, son Hunter and his wife Melissa Cohen, and grandson Beau, was not on the hunt for bargains.
On Small Business Saturday, the first family visited at least nine stores, at one point exiting the luxury boutique David Chase to the cheers of a small crowd gathered outside on a windy, 46-degree afternoon. As the Bidens crossed the street, a person shouted “love you,” to which the President responded, “Thank you! ” he said, waving to the group.
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