ALBAWABA - According to a recent report from Adobe Analytics, Black Friday e-commerce spending in the United States surged by 7.5% compared to the previous year, reaching an all-time high of $9.8 billion. This data further confirms that price-conscious consumers are actively seeking out the best deals and increasingly opting for online shopping.
The report highlights a shift in consumer behavior over the past year, with shoppers becoming more strategic in their approach to maximize discounts on significant shopping days like Black Friday. Vivek Pandya, a lead analyst at Adobe Digital Insights, noted that consumers are taking advantage of these marquee days to make the most of the available discounts.
The rise in online sales can be attributed, in part, to impulse purchases, with $5.3 billion of the total online sales coming from mobile shopping. Pandya also pointed out that influencers and social media advertising have played a significant role in making consumers more comfortable with mobile shopping.
Despite consumers' willingness to spend, they remain price-sensitive due to tighter budgets caused by last year's high inflation and interest rates. The report revealed that $79 million of the sales were made through flexible payment methods like 'Buy Now, Pay Later,' representing a 47% increase from the previous year as consumers sought ways to stretch their wallets.
The best-selling categories on Black Friday, as identified in the Adobe report, were electronics (such as smartwatches and televisions), toys, and gaming. However, home-repair tools did not perform as well, with Pandya explaining that the popularity of products directly correlated with the extent of discounts offered.
It is important to note that the data analyzed by Adobe primarily focuses on online sales and does not track brick-and-mortar retail transactions. However, a separate analysis by Mastercard revealed that in-store sales on Black Friday increased by just over 1% compared to the previous year, while online sales grew by over 8%.
Pandya highlighted that the traditional in-store Black Friday experience, characterized by long lines and crowded stores, has significantly changed. Online shopping has empowered consumers, allowing them to compare prices easily and secure better deals. Retailers are well aware of this shift and are striving to capture deal-hunting consumers by offering higher levels of discounts and introducing time-limited promotions.
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The momentum from Black Friday carried over from Thanksgiving Day, with online sales totaling $5.6 billion according to a previous analysis by Adobe. The report predicts that the strong spending trend will continue throughout the weekend and Cyber Monday, with an estimated $10 billion in online spending over Saturday and Sunday, and a record-breaking $12 billion on Cyber Monday.
However, as the holiday season progresses, spending is expected to taper off. Pandya anticipates that Cyber Monday, being the last major deal day of the season, will mark the final surge in spending on non-essential goods for the rest of the year. While some late holiday shopping may occur in December, the most significant growth is typically observed in November and during Thanksgiving week.
