Black Friday sales grew at a faster pace in the US this year, highlighting that discerning consumers are still opening their wallets when they find the right products.
Retail trade, excluding car sales, up 3.4% the day after Thanksgiving, the traditional start of the holiday shopping season, according to MasterCard Consumption pulse. That figure exceeded last year’s growth and is not adjusted for inflation.
Store sales rose 0.7%, less than last year’s pace. E-commerce was a bright spot with online sales up 14.6%, more than last year.
For retailers, the sluggish growth in in-store sales illustrates the challenges they face to attract price-sensitive consumers. Shoppers, exhausted by years of higher prices due to post-pandemic inflation, are increasingly comparing and waiting to find the best possible deals. Some say they are cutting budgets and trying to be more intentional about their spending.
Black Friday is considered one of the barometers of consumer spending in the US, although its characteristics are changing. People are increasingly spacing out their holiday shopping and buying gifts early. Online shopping continues to grow, while big, limited-time “doorbuster discounts” have declined. The shopping season continues through the weekend, followed by Cyber Week.
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US e-commerce sales rose to record 10.8 billion dollars on Black Friday, according to data from Adobe Inch. Traffic in stores on that day fell 8.2% compared to last year, according to preliminary data from Sensormatic Solutions. Early afternoon was the most popular time to browse the shops.
“Consumers waited, nibbled here and there, and really showed up on Black Friday,” said Michelle Meyer, chief economist at Mastercard’s Economic Institute.
E-commerce sales were weaker about two weeks before Thanksgiving, while in-store sales were relatively strong during that period, she said. This means that people can spend, but they are careful about what they buy and look for value.
Inflation has cooled, and there are items that cost less than last year, Meyer said, pointing to products like electronics and furniture. The weather has recently turned colder in certain parts of the country, which has helped boost clothing sales.
Operators go all-in about offers that will attract consumers and overcome the shorter shopping season this year. Walmart Inc. has extended its Black Friday deals and offers more discounts. The world’s largest retailer said Apple AirPods, 65 inches Year Televisions and men’s denim were among the top sellers in stores on Black Friday. Shoppers also bought winter clothes like pajamas and hoodies after a warmer-than-average November.
Home Depot Inch. and Best Buy offered discounts on a variety of items from holiday decor to large televisions. Goal corp. turned to exclusive items, including three Taylor Swift products – a travel book and vinyl and CD recordings. The company said all three exceeded expectations and that “The Eras Tour Book” is already their best-selling title of the year.
