Tuesday, 02 January 2024 12:17 GMT

Americans Are Ditching Queues For Digital Carts- And It Just Pushed Black Friday Online Sales To $8.6 Billion


(MENAFN- Live Mint) US shoppers spent $8.6 billion online this Black Friday, according to a report by Adobe Analytics, as more consumers opted to scroll for deals on their phones and laptops over standing in the cold to chase deals during the crucial holiday shopping weekend.

Online spending grew 9.4% through 6:30 pm ET (1130 GMT) on Black Friday compared with the previous year, according to Adobe Inc's data and insights arm, which vets e-commerce transactions, covering more than 1 trillion visits to retail sites in the United States.

Stores were expected to draw heavy footfall, but post-Thanksgiving bargain hunting remained muted as shoppers grew cautious of overspending amid persistent inflation, trade policy-driven uncertainty, and a weakening labor market, Reuters reported.

Online sales to set a new record

While early online sales signaled strong momentum, most Black Friday shopping at major retailers has happened between 10 am and 2 pm ET (1900 GMT) on Friday, according to data from Adobe Analytics, with another surge expected later in the evening.

However, the data firm anticipates shoppers to spend anywhere between $11.7 billion and $11.9 billion on Friday, following a final tally, saying it could set a new record for online sales on Black Friday.

It expects consumers to spend $5.5 billion on Saturday $5.9 billion on Sunday, both higher than last year as discounts remain elevated.

What's leading to this shift?

Black Friday spending has remained strong, thanks to deeper-than-expected discounts, Adobe said. The rise of online shopping has also diluted the day's traditional significance, with promotions now stretched over several weeks. Adobe Analytics expects Cyber Monday to generate $14.2 billion in online sales, a 6.3% increase from last year, making it the biggest online shopping day of the year.

Shoppers are relying heavily on promotional codes found online through social media influencers to squeeze out extra discounts during Cyber Week, Vivek Pandya, director of Adobe Digital Insights at Adobe Analytics told Reuters.

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The specter of higher prices loomed over the day. US retail sales rose less than expected in September, partly due to elevated prices, and President Donald Trump's tariffs have added to the pressure, contributing roughly 4.9 percentage points to retail prices, according to the non-profit Tax Foundation.

Heather Cheatham, 50, of Lynchburg, Virginia, started her Black Friday shopping by sampling scents and hunting for Armani eye tints in LVMH's Sephora at Crabtree Valley Mall in Raleigh, North Carolina. Cheatham did not set any budget, as she had already purchased gifts for her daughter at apparel company American Eagle Outfitters' Aerie, stereo equipment for her son and a golf putter for her other son, Reuters reported.

Retails stores witness a quiet holiday

Black Friday looked different this year, Marshal Cohen, chief retail adviser at Circana told Reuters. After visiting stores and malls across New York and New Jersey throughout the morning, he said the era of early-morning rushes and long lines outside retailers is largely over.

Among the retailers Cohen visited, Target“won the morning,” he said, because it gave swag bags to the first 100 customers. Walmart saw more footfall later in the day as more customers began visiting the stores.

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About an hour before sunup in freezing temperatures, Quantavius Shorter, 40, a diesel engine mechanic from Atlanta, was one of the first of only a dozen people waiting in line at 5:59 am at the local Walmart in Atlanta's Gresham Park neighborhood.

Shorter bought a Roku flat-screen smart TV for $298 at a discounted price, that perfect fits his smaller Christmas budget, Reuters reported.“This is usually $500,” said Shorter.“I'm here early because I expected it to sell out.”

Black Friday marks the unofficial beginning of the Christmas shopping season, which is why many Americans flock to stores and retail sites to grab deals on different things. Additionally, many employers give the workers the day off as part of the Thanksgiving holiday week-end, making it a more convenient time for shopping.

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Live Mint

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