The Black Friday Madness is Dominated by Online Shopping Through Mobile Apps
December 4, 2024
The pre-Christmas shopping season intensified on Black Friday, which this year fell on November 29, with many retailers extending their discounts for days or even weeks. A growing preference for online shopping is once again evident, with mobile purchases dominating, according to U.S. data. Meanwhile, declining interest in visiting brick-and-mortar stores highlights the need for retailers to find new ways to engage customers.
The Rise of Online Shopping and Mobile Dominance
According to Mastercard SpendingPulse estimates, online sales in the U.S. surged by 14.6% this Black Friday, compared to a mere 0.7% increase in brick-and-mortar stores. The gap was even more evident when adjusted for inflation. Adobe says U.S. online sales reached a record-breaking $10.8 billion on that day.
Data from Adobe Analytics reveal the growing popularity of online shopping through mobile apps. Mobile purchases are on track to hit a record $128.1 billion this November and December, a 12.8% year-over-year increase. These devices now account for over half (53%) of all online sales, with this share continuing to grow. During the first 24 days of November alone, Americans spent $39.9 billion in this way, a 13.3% increase compared to the previous year. Modern shopping apps offer convenient payment options like Apple Pay and Google Pay, personalized recommendations, and loyalty program management. Retailers like Amazon are further driving mobile adoption with app-exclusive deals.
Retailers Compete with Discount Wars
This year, retailers aimed to draw in customers with deeper discounts, acknowledging that high inflation continues to pressure shoppers to save. Black Friday has long since expanded beyond a single Friday, with sales lasting for days or weeks. Giants like Amazon.com and Walmart are expected to break sales records again. However, some stores, particularly Macy’s and others with narrower product ranges, have faced weakening sales in previous fiscal periods. Salesforce estimates that during Cyberweek—the week following Black Friday—global sales will hit approximately $311 billion. Meanwhile, reports from the National Retail Federation (NRF), corroborated independently by Deloitte, project the smallest year-over-year growth in pre-Christmas sales in six years.
Brick-and-Mortar Stores Turn to Experiences
As online shopping grows, customers are less inclined to visit physical stores, which are often overcrowded and sold out during events like Black Friday. To counter this, brick-and-mortar retailers are offering attractions and events alongside discounts. For example, electronics retailer Best Buy allowed shoppers to test augmented reality glasses Ray-Ban and massive TV screens. Others even provided spa services in their stores. This strategy highlights a shift toward creating unique shopping experiences to entice customers and make store visits more engaging.
Conclusion
The Black Friday shopping season reflects changing consumer habits and the impact of uncertain economic conditions. Retailers are competing for customers with extended discounts, while technological advancements in online shopping continue to push boundaries. Brick-and-mortar stores are adapting to the new reality, emphasizing experiences to stay relevant. The trends underscore that digital transformation is essential for survival in this evolving industry.
David Matulay, analyst of InvestingFox
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Sources:
https://www.investing.com/news/stock-market-news/us-black-friday-online-sales-hit-record-108-billion-93CH-3747698
https://www.investing.com/news/stock-market-news/sofas-become-points-of-purchase-as-americans-shop-with-their-phones-on-thanksgiving-3745821
https://www.investing.com/news/stock-market-news/black-friday-data-shows-us-shoppers-spent-108-billion-online-3747596
https://www.investing.com/news/stock-market-news/us-thanksgiving-online-sales-up-about-4-so-far-this-year-data-shows-3746077
https://www.investing.com/news/stock-market-news/us-retailers-attempt-to-stir-excitement-during-shorter-holiday-shopping-season-3744557
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