America
Black Friday and Cyber Monday Sales Surpass Expectations
Discounts and deals have once again claimed the spotlight during the holiday shopping season, with a report revealing that the Thanksgiving weekend performed better than industry expectations. An estimated 197 million shoppers hit physical…
Discounts and deals have once again claimed the spotlight during the holiday shopping season, with a report revealing that the Thanksgiving weekend performed better than industry expectations.
An estimated 197 million shoppers hit physical stores or visited online shops from Black Friday to Cyber Monday, as highlighted by the National Retail Federation (NRF). While slightly fewer than the record-breaking 200 million people who shopped over the same period in 2023, the figure surpassed NRF’s initial projections of 183 million shoppers. Despite reports of ongoing inflationary pressures, consumer spending reflected a robust start to the critical holiday shopping season.
Record Holiday Season Begins Despite Challenges
Consumer spending, a driving force of the US economy, has remained relatively steady heading into the holiday season. NRF President Matthew Shay stated, “Even with this year’s shortened shopping period and early discounts, the past weekend exceeded expectations due to the sheer volume of shoppers.”
Although fewer people shopped compared to 2023, spending patterns demonstrated resilience. Shoppers spent approximately 15% more online on Black Friday compared to last year, according to Mastercard SpendingPulse data. Growth in brick-and-mortar purchases was more modest, rising by 0.7%. Overall, holiday sales saw a 3.4% year-over-year increase.
Shoppers Prioritise Discounts and Value
Inflation-weary consumers remain selective about their purchases. Corporate executives from major retailers like Target and Walmart noted changing shopper behaviours. Many customers are now described as "resourceful," actively seeking value to stretch their budgets further. This shift pushed retailers to extend discounts beyond Black Friday and Cyber Monday to attract more cautious buyers.
Approximately 38% of shoppers began taking advantage of deals during the week before Thanksgiving, highlighting an earlier surge in sales. As customers prioritised discounts, spending leaned heavily into categories such as clothing and accessories, which accounted for nearly half of the average spend of $235 per person.
A Balanced Display of Physical and Online Shopping
The long-discussed rivalry between online and in-store shopping seemed to balance out this year. Nearly identical numbers of shoppers visited physical stores (126 million) and shopped online (124 million) over the weekend. However, Black Friday showed the strongest figures in both traffic categories, reaffirming its status as the biggest shopping day of the year.
The dual popularity of online and physical shopping highlights the importance of an omnichannel retail strategy. Insight from Mastercard SpendingPulse supports this narrative, revealing that sales surged across all major payment methods and platforms.
Cyber Monday Holds Strong as the Digital Champion
While Black Friday maintains its dominance across shopping channels, Cyber Monday firmly held its spot as the chief driver of online sales. Deals aimed at tech-savvy consumers encouraged substantial digital spending, contributing significantly to the overall holiday weekend profit.
A Broader Perspective on U.S. Holiday Sales
The NRF projects that this year’s holiday sales across November and December will grow between 3% and 3.5% compared to last year. Although slower than recent years, these projected figures align with pre-pandemic averages, suggesting a stabilisation in consumer trends.
Retailers have highlighted the ongoing pressure from higher living costs. A Target spokesperson remarked that the shorter holiday season, due to Thanksgiving falling later this year, contributed to an increase in shoppers who sought early sales rather than waiting for the traditional weekend events. This cautious yet strategic consumer behaviour is expected to continue as the holiday season progresses.
Key Spending Insights at a Glance
- Total shoppers during Thanksgiving weekend: 197 million
- Average spending per person: $235 (up $8 from 2023)
- Most popular shopping channels: Physical stores (126 million visitors), online platforms (124 million shoppers)
- Top shopping day: Black Friday led in both in-store and online traffic.
Staying Optimistic About the Holiday Season
The start of this year’s holiday spending season paints a mixed picture of consumer resilience and caution. While inflation remains a factor, the demand for deals and value-driven spending habits showcased the enduring enthusiasm for holiday shopping. Whether in-store or online, 2024’s Thanksgiving weekend has once again proven to be a pivotal moment for retailers to connect with customers.
Retailers are now focusing on maintaining momentum through December, offering extended sales campaigns in hopes of capturing late-season buyers. If the trends of resourceful consumer behaviour persist, it could lead to a highly stratified performance for different retail segments.
Thanksgiving Shopping: A Week-Long Event
The Thanksgiving shopping weekend has grown beyond its traditional Black Friday and Cyber Monday peaks, evolving into a dynamic, week-long opportunity for retailers. For consumers, the emphasis on finding the best deals underscores the ongoing value of collective holiday shopping experiences.
Shoppers and retailers alike can benefit from keeping an eye on sales trends for the rest of the holiday season.
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