In brief
In a year marked by economic uncertainty, Black Friday 2023 has seen record-high spending, with consumers reportedly spending $11.8 billion online alone—a 9.1% increase from the previous year. Experts suggest that while in-store traffic declined by 3.6%, shoppers are adapting by embracing online deals and stretching out their holiday spending. As more consumers opt for AI-driven shopping services and flexible payment options, retailers continue to experience strong sales momentum despite rising prices and job security concerns.
NEW YORK (AP) — Despite wider economic uncertainty hovering over this year’s holiday season, shoppers turned out in big numbers for Black Friday — spending billions of dollars both in stores and online.Adobe Analytics reported that U.S. consumers spent a record $11.8 billion online on Black Friday, marking a 9.1% jump from last year. Traffic peaked between 10 a.m. and 2 p.m., with online shopping carts seeing $12.5 million pass through every minute.On Thanksgiving Day alone, online spending was a record $6.4 billion. The surge in sales covered top categories like video game consoles, electronics, and home appliances. According to Adobe, AI-powered shopping services and social media advertising were crucial in influencing purchasing decisions.Salesforce estimated U.S. online sales on Black Friday totaled $18 billion, while globally, the number reached $79 billion. E-commerce platform Shopify noted that their merchants achieved a record $6.2 billion in sales on Black Friday, with cosmetics and clothing among the leading categories.However, the nature of Black Friday is evolving. Many consumers are now favoring online deals, opting for convenience over traditional in-store shopping. This shift has led to a decline in physical store traffic, which fell by 3.6% from last year, according to RetailNext, a company that measures foot traffic.Joe Shasteen, global manager of advanced analytics at RetailNext, indicated that shopping behavior has changed. Customers are now spreading out purchases over a longer time frame, entering stores with more specific goals compared to past holiday seasons.Despite this decline in traditional shopping, the drop from previous years is considered favorable compared to a sharper decline of 6.2% leading up to Thanksgiving. Shoppers are still willing to participate in massive promotions.As the holiday weekend progresses, experts expect further high spending, with Adobe predicting U.S. shoppers to spend another $5.5 billion on Saturday and $5.9 billion on Sunday, culminating in an estimated $14.2 billion peak on Cyber Monday.Though spending is up, rising prices may be contributing to a decrease in the number of items purchased per transaction. Data from Salesforce shows a 2% drop in the number of items at checkout compared to last year, alongside a 1% decrease in order volume as average selling prices rose by 7%.This year's holiday sales come amid economic insecurities exacerbated by tariffs on foreign imports and rising anxieties around job stability due to corporate layoffs. The National Retail Federation predicts U.S. shoppers will spend over $1 trillion during the November-to-December holiday season, marking the first time exceeding that threshold, albeit with growth rates slowing.Moreover, increasing credit card debt and rising delinquencies on short-term loans are pushing shoppers to consider 'buy now, pay later' plans for holiday purchases.
