Key Points
- Black Friday 2024, E-commerce sales surged by 14.6%, while in-store sales grew only 0.7%, with some reports indicating declines.
- Prices for many holiday-related items remained stable or declined, aiding consumer spending.
- Companies like Amazon and Walmart capitalized on the online shift with robust delivery infrastructure.
- Overall spending on Black Friday rose 3.4% year-over-year, with online spending reaching $10.8 billion.
Black Friday 2024 saw a notable shift in consumer behavior as online sales surged, contrasting with muted growth at physical retail stores. According to Mastercard SpendingPulse and data firm Facteus, U.S. consumers increasingly favored the convenience of shopping from mobile devices and computers.
Sales at brick-and-mortar stores rose by just 0.7% year-over-year, with some estimates indicating a decline. Facteus reported a 5.4% drop in in-store sales, further exacerbated when adjusted for inflation, showing an 8% decline. In stark contrast, e-commerce sales grew substantially, with Mastercard citing a 14.6% increase and Facteus noting an 11.1% rise in online spending, translating to 8.5% growth when accounting for inflation.
Michelle Meyer, chief economist at Mastercard Economics Institute, highlighted that while inflation exceeds 2%, prices for many holiday-related goods, such as clothing, personal care products, and sporting goods, have remained stable or declined, contributing to consumer spending.
Black Friday marked the official start of the holiday shopping season. However, shoppers appeared more cautious this year, with many visiting stores to browse rather than buy before the event. This cautious approach led to a concentrated surge in spending once discounts became available, primarily online.
Retailers like Macy’s, Kohl’s, and Target are expected to face challenges this holiday season due to intense competition and a shorter shopping period, with only 26 days between Thanksgiving and Christmas. In-store sales at chains like Best Buy and Target were relatively flat compared to last year.
E-commerce giants such as Amazon and Walmart, bolstered by investments in delivery infrastructure, reaped significant benefits from the shift to online shopping. Emerging platforms like Shein, Temu, and TikTok Shop also experienced robust growth, driven by aggressive discounting and increased mobile engagement.
According to Mastercard, overall spending on Black Friday rose 3.4% year-over-year. Adobe reported $10.8 billion in online sales, marking a 10.2% increase. Popular items included makeup, Bluetooth speakers, and espresso machines. Salesforce estimated online sales at $17.5 billion, citing strong demand for home appliances and furniture. As online shopping continues to dominate, the holiday season may reflect a lasting transformation in consumer purchasing habits.
