U.S. consumers spent a record $11.8 billion online during Black Friday sales
As the holiday season kicks off amidst economic uncertainty, shoppers showed up in full force for Black Friday, splurging billions of dollars both in brick-and-mortar stores and online.
According to Adobe Analytics, U.S. consumers set a new record by spending $11.8 billion online on Friday, marking a 9.1% increase from the previous year. The peak shopping hours were between 10 a.m. and 2 p.m. local time, with a staggering $12.5 million flowing through online shopping carts every minute. Mobile shopping played a significant role, driving over half of all sales.
On Thanksgiving Day, online spending hit another record at $6.4 billion, with top categories including video game consoles, electronics, and home appliances. The influence of shopping services powered by artificial intelligence and social media advertising was evident in consumer purchase decisions.
In-store Traffic Declines
Despite the online shopping frenzy, in-store traffic continued to decline. RetailNext reported a 3.6% drop in Black Friday foot traffic compared to the previous year. However, shoppers are changing their shopping habits, spreading out purchases over a longer period and entering stores with specific items in mind.
Joe Shasteen from RetailNext noted that while overall in-store spending is down, customers are still showing up for major promotional events like Black Friday. The drop in foot traffic on Black Friday was more modest than the decline leading up to Thanksgiving.
Experts anticipate the heightened holiday spending to persist through the weekend, with Adobe projecting $5.5 billion in online spending on Saturday and $5.9 billion on Sunday, leading up to an estimated peak of $14.2 billion on Cyber Monday.
Tariffs Impact Holiday Spending
Rising prices, attributed to President Trump’s tariffs on imports, may have influenced the holiday spending trends. Salesforce reported that while U.S. shoppers spent more overall on Black Friday, they purchased fewer items at checkout, with average selling prices rising by 7%.
Amid economic uncertainties, including job insecurities and increasing credit card debt, the National Retail Federation predicts that U.S. shoppers will surpass $1 trillion in holiday spending for the first time this year, albeit with a slower growth rate compared to previous years.
As consumers navigate financial challenges, they are turning to alternative payment plans like “buy now, pay later” options to manage holiday expenses.
