Black Friday sales grew at a faster pace in the US this year, underscoring that choosy consumers are still opening their wallets when they find the right products.
Retail sales, excluding automotive, grew 3.4% on the day after Thanksgiving, the traditional start of the holiday shopping season, according to Mastercard SpendingPulse. That figure outpaced growth last year and is not adjusted for inflation.
In-store sales rose 0.7%, lower than last year’s pace. E-commerce was a bright spot with online sales growing 14.6%, higher than last year’s.
For retailers, the soft in-store sales growth illustrates challenges they face to attract price-sensitive consumers. Shoppers, burned out from years of higher prices due to post-pandemic inflation, are comparing more often 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 viewed as one of the barometers for US consumer spending, though its characteristics have been evolving. People are increasingly spreading out their holiday purchases and buying gifts earlier. Online shopping continues to rise, while big, limited-time “doorbuster discounts” have declined. Shopping season continues through the weekend, followed by Cyber Week.
Read More: Anxious Retailers Look to Deals, Doorbusters to Revive Sales
US e-commerce sales rose to a record $10.8 billion on Black Friday, according to data from Adobe Inc. In-store traffic on the day declined 8.2% from last year, according to preliminary data from Sensormatic Solutions. Early afternoon was the most popular time for in-store browsing.
“Consumers were waiting, nibbling here and there, and really showed up on Black Friday,” said Michelle Meyer, chief economist at the Mastercard Economics Institute.
E-commerce sales were softer for about two weeks leading up to Thanksgiving, while in-store sales were relatively strong during that period, she said. This indicates people are able to spend, but are being mindful about what they buy and are seeking value.
Inflation has cooled, and there are items that cost less than they did last year, Meyer said, pointing to products like electronics and furniture. Weather turned colder recently across certain parts of the country, helping lift apparel sales.
Operators are going all-in on deals to appeal to consumers and navigate a shorter shopping season this year. Walmart Inc. extended its Black Friday specials and is offering more discounts. The world’s largest retailer said Apple AirPods, 65-inch Roku TVs and men’s denim were among the bestsellers in stores on Black Friday. Shoppers also bought winter clothes like pajama sets and hoodies after a warmer-than-average November.
Home Depot Inc. and Best Buy Co. offered discounts on items ranging from holiday decor to large televisions. Target Corp. turned to exclusive items, including three Taylor Swift products – a tour book and vinyl and CD recordings. The company said all three have exceeded expectations and that “The Eras Tour Book” is already its bestselling title of the year.
Credit: Source link
