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E-commerce spending on Black Friday surged by 7.5% compared to the previous year, setting a new record at $9.8 billion in the United States, as reported by Adobe Analytics. This trend underscores the preference of price-conscious consumers who actively seek out the best deals and increasingly turn to online platforms for their shopping needs. Vivek Pandya, a lead analyst at Adobe Digital Insights, noted the emergence of a strategic consumer mindset over the past year. These consumers strategically leverage marquee shopping days to capitalize on discounts, emphasizing a growing trend in online deal hunting.
The increase in Black Friday spending indicates a consumer more inclined to spend compared to 2022, a period marked by high gas and food prices. Pandya observed that the growth on Black Friday might be attributed to impulse purchases, with $5.3 billion of online sales originating from mobile shopping. He highlighted the influence of influencers and social media advertising, noting that these factors have contributed to consumers becoming more at ease with making purchases on their mobile devices.
However, consumers remain attuned to prices, navigating constrained budgets influenced by last year’s unprecedented inflation and interest rates. As per the Adobe survey, $79 million of the sales were generated by individuals choosing the ‘Buy Now, Pay Later’ flexible payment option, reflecting a 47% increase from the previous year.
The Adobe report identified electronics such as smartwatches and televisions, as well as toys and gaming, as the best-selling categories on Black Friday. In contrast, home-repair tools exhibited lower performance. Pandya highlighted that the top-selling items were directly linked to the products offering the most substantial discounts.
Adobe compiles its data by scrutinizing one trillion visits to U.S. retail websites, covering 18 product categories and 100 million unique items. It’s important to note that Adobe does not monitor transactions that occur in physical retail stores. In a separate analysis, Mastercard reported that this year’s Black Friday witnessed a marginal increase of just over 1% in in-store sales compared to the robust growth of over 8% in online sales as compared to the previous year.
“The paradigm surrounding the in-store Black Friday experience has indeed shifted, with long lines and similar elements undergoing a change,” remarked Pandya from Adobe. He noted that consumers feel “more in the driver’s seat” when shopping online, emphasizing the ease of making side-by-side price comparisons and securing better deals.
Recognizing the surge in deal-seeking consumers, retailers are actively striving to attract and engage this demographic. Best Buy and Lowe’s, for instance, have disclosed plans to increase their discount levels. Additionally, retailers like Target and Ulta Beauty are implementing pop-up promotions, providing 24-hour discounts on specific brands and items. The Black Friday momentum continued from Thanksgiving Day, where online sales amounted to $5.6 billion, according to a previous analysis by Adobe.
Anticipating continued spending vigor, Adobe foresees a robust weekend and Cyber Monday ahead, offering the most significant bargains. The report projects online shoppers to expend approximately $10 billion during Saturday and Sunday, with a record-breaking $12 billion expected on Cyber Monday. However, as the holiday season progresses, spending is likely to gradually decrease, as noted by Pandya. Cyber Monday, being the concluding major deal day of the season, could signify the final surge in spending on non-essential goods for the remainder of the year.
“We anticipate a slowdown in growth as the impact of discounts diminish, significantly influencing buyer behavior this season,” remarked Pandya. He acknowledged the presence of gift-givers who tend to procrastinate their holiday shopping, implying that spending might persist into late December. However, he emphasized that the substantial growth surges are typically concentrated in November and during Thanksgiving week.
