According to the most recent Mastercard SpendingPulse report, which measures in-store and online retail sales across all forms of payment, U.S. retail sales on Black Friday (Nov. 24) were up more than 2.5 percent year-over-year (YoY) excluding automotive, not adjusted for inflation. Key trends included from the Black Friday shopping data include the following:
- E-commerce sales were strong: E-commerce sales increased more than 8.5 percent YoY as consumers shopped deals online, avoiding crowds. In addition, for the first time, several sporting events aired on Friday, making online shopping an appealing option for game day viewers to shop wherever they might be watching. In-store sales increased 1.1 percent YoY.
- Restaurant sales were up: In addition to shopping, consumers gathered with friends and families for shared meals to celebrate the holidays with the restaurant sector continuing its growth streak.
- Retailers kickstarted promos early: Retailers once again started their Black Friday sales early in the month, giving consumers ample time to search for promotions and score the best deals.
- Winners and losers: While experiential gifts have been the popular choice the past few years, consumers continue to search for something to unwrap for the holidays with jewelry and apparel being the top gift sectors of the day. Department store sales and furniture and furnishings continued to lag other sectors compared to 2022.
Total Retail’s Take: Mastercard wasn’t the only company reporting positive Black Friday sales. Consumers spent a record $9.8 billion online on Black Friday, which marks a 7.5 percent increase over the year prior, according to Adobe Analytics. What’s more, shopper visits, a metric used to assess in-person sales, rose 4.6 percent compared to a year ago — a rate nearly double the average overall increase in foot traffic so far this year, retail data firm Sensormatic Solutions reported. And the spending won’t stop with the end of the weekend. Consumers are expected to spend between $12 billion and $12.4 billion on Cyber Monday, which would make it the biggest online shopping day ever recorded, according to Adobe Analytics.
However, despite the good news, experts say retailers are remaining cautiously optimistic about holiday sales this year. After all, consumers are still facing inflation, stringent credit conditions, and elevated interest rates. In short, while they’re shopping, consumers are looking for deals and discounts to stretch their dollars.
Steve Sadove, senior advisor for Mastercard and former CEO and chairman of Saks Inc., agrees. “Consumers are navigating the holiday season well and taking advantage of holiday promotions … (They) are also shopping smarter, using all of their tools — from searching across channels to cross-checking on apps and websites — to maximize value while they spend time with friends and family.”
