Despite forecasts attempting to downplay the significance of Black Friday this year, the shopping extravaganza proved its resilience, with online sales in the US reaching a staggering $9.8 billion—a notable 7.5% surge from the previous year, as reported by Adobe Analytics. The dynamics of consumer behavior unveiled some compelling trends. Mobile devices played a pivotal role, contributing $5.3 billion to online sales, representing 54% of the total. According to Adobe, this holiday season is poised to witness a paradigm shift, with mobile purchases expected to surpass desktop transactions for the first time. Concurrently, Salesforce highlighted the dominance of mobile in the shopping realm, revealing that 79% of all shopping activities, encompassing both browsing and purchasing, occurred on mobile handsets.
A noteworthy evolution in consumer finance strategies emerged, as Americans increasingly embraced options to stretch their holiday budgets. Adobe’s findings indicated a remarkable 47% surge in BNPL usage compared to the previous year, amounting to $79 million on Black Friday alone. This trend signaled a resurgence for the BNPL sector, which faced challenges in the post-Covid economy. Notably, Klarna, a prominent player in the BNPL landscape, recently celebrated its first quarterly profit in four years.
Conversely, traditional store-branded credit cards experienced a decline in popularity. The allure of discounts offered at the point of sale seemed to lose its charm, with new registrations plummeting by 37% compared to 2015, according to the Consumer Financial Protection Bureau. Potential factors contributing to this decline include exorbitant interest rates exceeding 30% on certain store-branded cards and a shifting consumer landscape. Bargain-hunting Americans exhibited decreased brand loyalty, with a higher rate of retailer switching noted since the onset of the Covid pandemic, as reported by McKinsey.
As the shopping frenzy continues, all eyes are now on Cyber Monday, projected to shatter records with an anticipated $12 billion in sales—a robust 5.4% increase from the previous year. Electronic goods, a driving force behind the past week’s sales, are expected to see prices slashed by 30%, ensuring the momentum of this online shopping extravaganza reaches unprecedented heights.
