“As Black Friday hit record spending online, we’re also seeing more prominent signs of a budget-conscious consumer this year,” Vivek Pandya, lead analyst, Adobe Digital Insights, reportedly said. “Shoppers are embracing the Buy Now Pay Later (BNPL) payment method more this year to be able to buy desired gifts for family and friends.”
U.S. retail sales on Black Friday were up 12% year-over-year excluding automotive, according to Mastercard SpendingPulse, which measures both in-store and online retail sales across all forms of payment (not adjusted for inflation). In-store sales increased 12% year-over-year, while e-commerce sales experienced sustained growth up 14% year-over-year, according to Mastercard data.
Sensormatic Solutions saw a 2.9% increase in traffic on Black Friday, compared to 2021, according to preliminary shopper visit data for U.S. brick-and-mortar retail stores and shopping centers. Visits to physical stores on Thanksgiving Day, November 24, increased by 19.7% year-over-year. It also found enclosed mall traffic increased 1.2% and non-mall traffic (e.g., lifestyle centers, strip centers and standalone stores) increased 4.7% compared to Black Friday 2021.
“This Black Friday, retailers offered promotions across channels leading to strong year-over-year growth online and in-store,” said Steve Sadove, senior advisor for Mastercard and former CEO and chairman of Saks Incorporated. “Apparel, Electronics, and Restaurants were strong performing sectors as consumers turned holiday shopping into a full day experience.”
“With holiday promotions kicking off long before the Thanksgiving weekend, consumers have been shopping strategically for the season’s best deals,” said Michelle Meyer, North America chief economist, Mastercard Economics Institute. “Retailers delivered on Black Friday with deals that enticed consumers to fill their carts despite the inflationary environment.”
The Store Experience
Kohl’s CFO Jill Timm said earlier this month that the department store is moving back into some of its electronics – “smart home, TVs, things that we haven’t necessarily participated in, but we know are big Black Friday deal drivers for people to come to the store.”