Black Friday saw a record-breaking $9.8 billion spent by online shoppers in the US, according to Adobe Analytics, providing a positive outlook for retailers grappling with lackluster sales projections for the holiday season.
The surge in online sales, up by 7.5% from the previous year, was driven by increased demand for electronics, smartwatches, TVs, and audio equipment. Consumers expanded their budgets by utilizing buy-now, pay-later options, which experienced a notable 72% increase compared to the week preceding Thanksgiving.
Resilience Unveiled: Rebounding from Last Year’s Challenges, Assessing US Consumer Trends in the Current Holiday Shopping Season
This increase represents a rebound from the previous year’s holiday season, marred by high inflation impacting consumer spending and extensive retailer discounts to clear excess inventory. The current holiday shopping season serves as a barometer for US consumer resilience, considering diminishing pandemic-era savings and persistently high interest rates, reaching levels not seen in over two decades.
A separate gauge by Salesforce Inc. reported a 9% year-on-year growth in US online sales, driven by categories such as footwear, sporting goods, health, and beauty, with notable discounts observed in clothing, home, and beauty products. The days leading up to Cyber Monday on November 27 offer companies an early indication of holiday-season performance, especially as brick-and-mortar data is expected to show a slower pace. Despite this positive online performance, initial forecasts for November and December indicate subdued sales growth.
Divergent Outlooks: Contrasting Projections for US Online Sales in 2023 and Global Black Friday Success for Shopify
Salesforce projected a 1% growth in online sales during this period compared to 2022 in the US, marking the slowest pace in at least five years. Adobe, on the other hand, anticipates a 4.8% revenue growth, significantly trailing the pre-pandemic average annual rate of 13%. It’s noteworthy that the two companies analyze different transactions, leading to variations in their reported figures. Additionally, Shopify Inc., a Canada-based e-commerce marketplace, reported a global Black Friday sales increase of 22%, with clothing, personal care, and jewelry leading the way.
