the staff of the Ridgewood blog
Ridgewood NJ, 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 increase underscores the preference of budget-conscious consumers for seeking the best deals, predominantly online.
Vivek Pandya, a lead analyst at Adobe Digital Insights, highlighted the emergence of a strategic consumer mindset over the past year. These consumers strategically capitalize on key shopping days to maximize discounts, contributing to the observed Black Friday spending spike. Unlike the previous year, when high gas and food prices hindered spending, this year’s consumer appears more willing to open their wallets.
Pandya suggested that impulse purchases played a role in Black Friday’s growth, particularly with $5.3 billion in online sales originating from mobile shopping. He attributed this trend to the influence of social media advertising and influencers, making consumers more comfortable with mobile transactions.
Despite the willingness to spend, shoppers remain price-sensitive due to the impact of record inflation and interest rates in the previous year. The Adobe survey revealed that $79 million of the sales were facilitated through the ‘Buy Now, Pay Later’ flexible payment method, marking a 47% increase from the previous year.
According to Adobe’s findings, the best-selling categories on Black Friday included electronics such as smartwatches and televisions, as well as toys and gaming products. Notably, home-repair tools underperformed, with Pandya linking top-selling items directly to the extent of discounts offered.
While in-store sales saw a modest increase of just over 1%, online sales experienced significant growth of over 8% compared to the previous year, according to a Mastercard analysis of Black Friday sales. Pandya acknowledged a shift in the Black Friday in-store experience, emphasizing that consumers now have more control while online shopping, enabling easier price comparisons and securing better deals.
Retailers are attuned to the rise of deal-seeking consumers, with companies like Best Buy and Lowe’s announcing higher discount levels. Target and Ulta Beauty have implemented pop-up promotions offering 24-hour discounts on select brands and items to attract shoppers.
Black Friday’s momentum carried through from Thanksgiving when online sales reached $5.6 billion, according to a prior Adobe analysis. The spending strength is anticipated to continue over the weekend and through Cyber Monday, with Adobe forecasting around $10 billion in online spending on Saturday and Sunday and a record $12 billion on Cyber Monday.
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