U.S Black Friday Shoppers Favour Online Deals Over Physical Stores
Despite retailers offering early discounts in anticipation of the festive season, US consumers still flocked to shop during Black Friday, predominantly through online platforms. New data shows that both in-store and online retail sales increased year-over-year for Black Friday, with online sales taking the lead by a significant margin. This shift reflects changing consumer habits as they prioritise convenience and targeted value over traditional in-store shopping experiences.
Black Friday Sales See Steady Growth
According to Mastercard SpendingPulse, Black Friday retail sales across the United States saw a 3.4% year-over-year increase. Steve Sadove, senior advisor for Mastercard, commented in a news release, “Shoppers are making the most of seasonal deals and enjoying a balance of experiences, spending and gifts for their loved ones.” Sadove highlighted that today’s consumers are more strategic with their purchases, focusing on promotions they perceive as delivering the best value.
Interestingly, while in-store sales edged up slightly by less than 1% compared to the previous year, online shopping saw a much larger boost. Online sales increased 14.6%, reflecting a growing trend toward e-commerce.
Key Drivers of This Shift
One factor contributing to the rise of online shopping is accessibility. With online retailers offering flash sales, flexible delivery options, and a seamless shopping experience, it’s no surprise that more consumers are opting to shop from the comfort of their own homes.
Additionally, online platforms provided real-time inventory updates during this shopping period, which helped mitigate instances of disappointment due to the unavailability of desired products often seen in physical stores.
Record Numbers for Online Shoppers
The statistics from Adobe Analytics revealed that online shoppers spent approximately $10.8 billion on Black Friday this year. This marks a significant increase compared to the $9.8 billion spent in 2023. Adobe also noted extraordinary spending on Thanksgiving Day itself, setting another record, with shoppers spending $6.1 billion.
E-commerce giant Shopify also reported a new milestone. Shopify’s platform-enabled merchants set a global record of $5 billion in sales over Black Friday alone. US shoppers spent an average of $157 per checkout, predominantly on items such as skincare products, t-shirts, and vitamins.
But the shopping surge isn’t slowing down just yet. Adobe expects Cyber Monday to cap the season as the largest online shopping day, projecting consumer spending to hit a record-breaking $13.2 billion—a 6.1% increase from the prior year.
Trends in Consumer Preferences
While electronics, jewellery, and apparel drove the most purchases during Black Friday, Mastercard noted a noticeable increase in online sales for apparel despite the warmer autumn weather. This indicates that shoppers prioritised promotional discounts over seasonal suitability in their buying decisions.
Spending trends extended outside retail too. Grocery spending saw a noticeable uptick in the two weeks leading up to Black Friday, as families stocked up for Thanksgiving. Meanwhile, restaurants experienced a surge in spending on the Friday and Saturday following Thanksgiving.
The Bigger Picture for Holiday Spending
The National Retail Federation (NRF) estimated in October that Americans would spend an average of $902 per person on gifts, food, decorations, and other holiday items this festive season. This is $25 more per person than the previous year and $16 higher than the record set in 2019. Of this amount, $261 is expected to go toward spending on food, candy, and decorations.
Contrary to initial economic predictions, which suggested subdued activity during Thanksgiving week, the sharp increase in Black Friday and Thanksgiving spending highlights consumers’ willingness to splurge when lured by the right deals.
Environmental Concerns Around Overconsumption
While Black Friday marks a period of heightened brand activity and discounts, it also raises questions around sustainability. Flora Bagenal, producer of Netflix’s documentary “Buy Now!”, discussed this issue with CNN, pointing out that many Black Friday products are designed for short-term use.
“These electronics, toys, and clothes are mass-produced and eventually discarded by consumers, creating a cycle of overconsumption that’s detrimental to the environment,” Bagenal remarked. She urged shoppers to consider the longevity of their purchases and make more thoughtful choices.
What Does This Mean for Businesses?
The duality of enhanced consumer spending alongside evolving shopping habits signals businesses must adapt to the preferences of the digital-first buyer. Beyond offering aggressive discounts, retailers must focus on creating frictionless online shopping experiences and ensuring they have the technology to scale efficiently during peak periods like Black Friday and Cyber Monday.
Preparing for Cyber Monday
With Cyber Monday already tipped to outperform Black Friday in the U.S—as it has in recent years—businesses and consumers are both gearing up for what promises to be an even broader digital shopping spree. Brands leveraging data analytics and consumer insights from Black Friday can continue to target consumers with personalised deals in real time, paving the way for record-breaking numbers.
Shoppers, on the other hand, have one message for businesses during this season: reliable, enjoyable, online shopping is no longer optional—it’s expected.
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