In a groundbreaking surge, Black Friday witnessed an unprecedented milestone as online shoppers in the US unleashed a staggering $9.8 billion, as unveiled by Adobe Analytics. This record-breaking online spending spree not only injects optimism into retailers facing subdued sales forecasts but also signals a dynamic shift in consumer behavior.
A surge in demand for electronics, smartwatches, TVs, and audio equipment fueled a notable 7.5% increase in online sales compared to the previous year. Consumers, aiming to maximize seasonal deals, embraced buy-now, pay-later options, with a remarkable 72% spike observed from the week leading up to Thanksgiving.
This uptick marks a significant recovery from the challenges faced during the previous holiday season, characterized by high inflation impacting consumer spending and retailers resorting to heavy discounts to clear excess inventory. The 2023 holiday shopping landscape serves as a litmus test for the resilience of US consumers as pandemic-era savings diminish, and interest rates maintain a more than 20-year high.
According to a separate gauge by Salesforce Inc., US online sales exhibited robust 9% year-on-year growth, primarily driven by strong performances in footwear, sporting goods, health, and beauty categories. The most significant discounts were noted in clothing, home, and beauty.
As companies eagerly await the slower brick-and-mortar data, online sales for the days leading up to Cyber Monday on Nov. 27 will offer an early indicator of holiday-season performance. However, initial forecasts for November and December paint a challenging picture, with Salesforce predicting a meager 1% online sales growth compared to 2022, marking the slowest pace in at least five years. Adobe’s expectations align with a 4.8% revenue growth, significantly lagging behind the pre-pandemic average annual rate of 13%. The variance in numbers between the two companies is attributed to their analysis of different transactions.
In a global context, Shopify Inc., the Canada-based e-commerce marketplace, reported a robust 22% surge in Black Friday sales, with clothing, personal care, and jewelry emerging as the leading categories.
The resounding success of Black Friday online spending sets the stage for a dynamic and transformative holiday shopping season, emphasizing the evolving trends and preferences of today’s consumers.