In a spectacular start to the holiday season, a staggering 200.4 million individuals flooded both physical stores and online platforms in search of discounted treasures from Thanksgiving Day through Cyber Monday. This remarkable surge, revealed in a survey conducted by the National Retail Federation (NRF) in collaboration with Prosper Insights & Analytics, signifies an unparalleled high since tracking commenced in 2017.
Record-Breaking Turnout Over the Black Friday Weekend:
The turnout exceeded all expectations, surpassing last year’s figure of 196.7 million shoppers and even the NRF’s projection of approximately 182 million people during the five-day weekend. This surge highlights the growing enthusiasm among consumers for the Black Friday weekend shopping extravaganza.
Online Shopping Takes the Lead:
An interesting trend emerged in the NRF survey, showcasing a significant rise in online shopping, reaching 134.2 million individuals compared to 130.2 million the previous year. Conversely, the number of in-store shoppers witnessed a slight dip, declining from 122.7 million in 2022 to 121.4 million this year.
Average Spending and Consumer Sentiment:
Although the NRF did not provide an estimate for total spending, it reported that the average consumer spent $321.41 on holiday-related purchases over the weekend, aligning closely with the $325.44 average from the previous year. NRF CEO Matt Shay attributed the robust turnout to both consumer sentiment and enticing deals, emphasizing the impact of favorable weather conditions.
Top Gifts and Consumer Progress:
The NRF’s survey identified clothes and accessories as the most sought-after gifts, with around half of respondents making purchases in this category. Toys followed closely, capturing the interest of nearly a third of the surveyed individuals. Notably, personal care or beauty items entered the top five most popular gifts for the first time.
As of Thanksgiving weekend, consumers reported being approximately halfway through their holiday shopping, according to the survey of 3,498 adult consumers conducted from Nov. 22 to 26.
Digital Spending Highlights:
Black Friday saw a substantial boost in U.S. online sales, reaching $9.8 billion, reflecting a 7.5% increase from the previous year, as reported by Adobe. Cyber Monday surpassed this, witnessing a 9.6% year-over-year surge in e-commerce spending, totaling $12.4 billion.
Outlook for the Rest of the Season:
While early shopping displayed strength, industry analysts remain cautious about predicting the remainder of the peak retail season. The surge in early shopping could signify a quest for attractive deals rather than a robust desire to spend. Additionally, it may signal a return to a pre-pandemic shopping pattern, where customers concentrated their spending during peak events like Black Friday sales and the final days before Christmas.
Industry Projections:
Holiday sales for November and December are anticipated to rise by 3% to 4% year over year, ranging between $957.3 billion and $966.6 billion, according to the NRF. This growth, although slower than during the pandemic, aligns with average sales increases before Covid.
NRF CEO Matt Shay acknowledged the possibility of modest or seemingly disappointing sales this holiday season, attributing it to comparisons with the extraordinary pandemic spending boom. He emphasized the difference between moderation and bleak sales, noting factors such as the end of stimulus checks and the resurgence of higher spending on services.
Takeaway:
In summary, the Black Friday weekend has not only shattered records but also set the stage for a dynamic and potentially transformative holiday shopping season, characterized by a blend of online and in-store purchases. The industry is closely watching to see how consumer behavior unfolds in the coming weeks.
