Black Friday Sales Prevail

Another year, another Black Friday – and this time there was intrigue about whether the rising cost of living would curtail the seemingly unstoppable trajectory of this shopping event. Yet, despite those headwinds –?and the trend?of deals launching earlier and earlier – the records were broken once again.?

The results:

• In the US, shoppers?spent $9.8bn?online on Black Friday, according to Adobe, up?7.5% year-over-year (YoY).?
• Of that, mobile devices?accounted for 54% of digital sales. Digital spend continues to grow as people compare prices to find the best deals (rather than trudging around stores).?
• Mastercard shared?that overall US retail sales on the Friday were up +2.5% YoY.
• Traffic to physical stores was up 2.1%, with the Midwest and Northeast showing-up the strongest, +3.0% and +2.6% YoY.
• Electronics were a major revenue driver?across all channels,?+152% vs. average daily sales for October. Smart watches, TVs, and audio equipment were the top items. Meanwhile, physical sales?were buoyed by?health and beauty, +13.3% YoY, and jewellery, +6.7%. All of these categories have a strong gifting slant to them.?
• Consumer ‘caution’?could?be seen with the rise of ‘buy now, pay later’ (BNPL) orders,?which totalled $79m?between November 18th-24th, compared to the previous week, (+72%.) – as people looked to spread repayments over time.?
• Discounts and momentum will continue into Cyber Monday –?overall US online holiday sales?are expected to rake-in $221bn from 1st?November to 31stDecember, +4.8% YoY.
• Moreover, the season continues to flatten, with discounts starting earlier and?46% of buyers?shopping “in the months leading up to the Holidays” as opposed to just the deal days.
• In the UK the story was a more muted affair, with?Nationwide revealing?just a +2% increase YoY. Unlike America, physical retail stepped-back, -3.1% in stores on the day; this despite retail park footfall being?up?+1.9% YoY.?

Arguably this year?shoppers were looking for?“items they really want and need, rather than simply buying lots of things on impulse”. This means that whilst sales were healthy, retailers needed to be far more considered with their pricing and communication strategy. Indeed,?according to Mintel, in the future “to remain competitive, retailers must position sales and promotions throughout the season and consider personalized deals that are tailored to consumers’ preferences”.

And finally…

Amazon broadcast the New York Jets vs. the Miami Dolphins (American) football game live on Black Friday – a first for the professional game. The broadcast was littered with commerce opportunities?from ads featuring shoppable QR codes?to?product drops with prices unlocked?throughout the evening. As a perk, there was no need to join Amazon’s membership program, Prime, to access the game – unlike their Thursday night offering. Not only does this give a very real glimpse into what connected commerce looks like, it is remarkable that the National Football League (NFL) chose to?partner with a streaming provider?and not a traditional broadcaster, likely due to Amazon’s ability to drive higher viewing figures through its promotional activity. ????

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