In brief
This year's Black Friday saw U.S. shoppers spending a staggering $11.8 billion online, marking a 9.1% increase from last year, even as concerns about economic uncertainty persist. Both in-store and online shopping habits are evolving, with consumers favoring longer promotions and online convenience. Analysts predict continued spending through the weekend, but rising prices and economic factors, such as tariffs and job security worries, are influencing shopper behavior.
NEW YORK (AP) — Despite wider economic uncertainty hovering above this year’s holiday season, shoppers turned out in big numbers for Black Friday, spending billions of dollars both in stores and online.Adobe Analytics, which tracks e-commerce, reported that U.S. consumers spent a record $11.8 billion online on Friday, reflecting a 9.1% increase from last year. Traffic peaked between 10 a.m. and 2 p.m. local time, generating $12.5 million in online sales every minute.Additionally, consumers spent a record $6.4 billion online on Thanksgiving Day. Sales soared in popular categories such as video game consoles, electronics, and home appliances, with artificial intelligence and social media ads playing significant roles in influencing consumer purchases.Meanwhile, Salesforce estimated Black Friday online sales totaled $18 billion in the U.S. and $79 billion globally. E-commerce platform Shopify reported its merchants generated a record $6.2 billion in sales worldwide on Black Friday, with sales peaking at $5.1 million per minute.However, the nature of Black Friday shopping has changed, moving away from traditional in-store crowds to online convenience and longer promotional periods offered by retailers. Initial data from RetailNext indicated a 3.6% decline in U.S. in-store traffic on Black Friday from last year.Joe Shasteen, global manager of advanced analytics at RetailNext, commented on this shift, stating that shoppers are now spreading their purchases over more time and approaching stores with more focused intentions.Despite the drop in foot traffic, Shasteen noted that Friday's performance is “notably better” compared to a sharper decline seen before Thanksgiving. Analysts expect holiday spending will continue through the weekend, with predictions of $5.5 billion in U.S. e-commerce sales on Saturday and $5.9 billion on Sunday, culminating in a potential record of $14.2 billion on Cyber Monday.Rising prices could also be influencing these spending patterns. Salesforce discovered that U.S. shoppers purchased fewer items on Black Friday (down 2% from last year), compounded by price increases averaging 7% against the backdrop of tariffs affecting many consumer goods.The National Retail Federation estimates that holiday spending this season may surpass $1 trillion for the first time, although the rate of growth is expected to slow compared to previous years, with a projected increase of 3.7% to 4.2%.Concerns over rising credit card debt and short-term loan delinquencies are prompting more shoppers to adopt “buy now, pay later” plans, enabling them to stagger payments for holidays purchases.
