Online shopping flourished
Salesforce data shows that consumers globally spent $74.4 billion on online purchases during the shopping spree, up 5 percent from last year.Adobe Analytics (ADBE), reports that U.S. consumers spent $10.8 billion on online purchases on Friday alone, up 10 percent from the previous year, and even $13.3 billion during Cyber Monday, up 7.3 percent from last year. Thanksgiving was also notable, with sales rising to $6.1 billion from last year's $5.6 billion. According to Mastercard SpendingPulse (MA) data, sales from online shopping grew 15 percent, while retailers with brick-and-mortar stores were left crying their eyes out, as growth in those stores was less than 1 percent. If inflation were added in, the difference would be even higher. The discounts and promotions that retailers launched just days before Black Friday to attract shoppers right at the start of the season also played a key role. According to Mastercard, total sales from brick-and-mortar stores and e-stores rose 3.4 percent compared to last year's Black Friday. The National Retail Federation (NRF) previously estimated that the average American will spend $902 this holiday season (November through December), up $25 from last year.
The main means of purchase is the mobile phone
While department stores such as Macy's (M) or retailer Target (TGT) could see a downturn over the next period, according to the payments giant, companies with digital platforms such as Amazon.com (AMZN) may continue to benefit from interest in online shopping. Mobile orders have been growing consistently for several years and, as Salesforce reports, up to 57.6 percent were reissued via apps globally on Black Friday. The reason for this growth is also due to promotions and offers that operators are providing to customers exclusively through their apps. Canadian e-commerce firm Shopify (SHOP) reported that it set a new global record of $5 billion in sales during Friday's shopping day, with U.S. shoppers spending an average of $157 per purchase. Spending thus indicates a clear preference for shopping from home.
Toys dominated, people waited for hours in line because of Taylor Swift
Adobe said in its report that toys were a strongly demanded category, with sales up 622 per cent from the current day. It was followed by jewelry with a 561 percent increase, appliance sales were up 476 percent, apparel sales strengthened by 374 percent and electronics by a 334 percent. While decorative cosmetics, smart watches and toys featuring Harry Potter and the latest fantasy musical, The Witch, were the top sellers during Friday, during Thanksgiving it was Dyson Airwrap hairdryers, coffee makers, Legos and games for gaming consoles. The aforementioned Target department store chain even bet on popular singer Taylor Swift in an effort to boost declining sales. The retailer's stores allow customers to purchase CDs and a book of her global Eras Tour, which caused her fans to stand in lines across America for hours this winter. For the record- Target bet on a similar tactic in the first quarter of this year when the singer released a new album, which, according to Reuters, boosted the chain's sales revenue in that period .
It is also popular in Europe
The sale frenzy is mainly known in the US and only came to Europe a few years ago, but it has become even more popular among European shoppers along with Cyber Monday. According to Euronews, Germans, Austrians and French were expected to spend the most during Black Friday and Cyber Monday. However, specific data was not yet available at the time of writing. Many countries in Europe, including Slovakia, extend promotions and discounts for longer periods before and after Black Friday, some lasting a week, but the biggest players in the market offer discounts for almost a whole month, peaking during the biggest shopping holiday. In Slovakia alone, shoppers spent 14.5 million euros ($15.3 million) during Black Friday week, up 2 million from the previous year, according to Shoptet data. Czech e-shops, in turn, raked in nearly eight billion CZK ( 336 million USD), which is one billion CZK more than during the previous year, according to the Asociace pro elektronickou komerce. Cyber Monday, however, did not catch on much there.
The wider impact of the November sales
Black Friday can also potentially affect stock movements and the economic performance of individual retailers. [1] According to the data, e-commerce giants may benefit from record online sales, but modest growth in brick-and-mortar stores could dampen overall market enthusiasm. Beyond financial considerations, however, it is important to be aware of the environmental impact of this "shopping frenzy." The surge in demand for mass-produced goods, often driven by impulse buying, is contributing to overproduction, waste and a growing carbon footprint. Many of these items, especially cheap electronics and fast fashion, are quickly discarded, exacerbating landfill and pollution problems. This raises questions about the long-term sustainability of such events whose main motive is consumption. The fact that more and more consumers are beginning to prioritise quality over quantity offers hope in this regard.
Olivia Lacenova, chief analyst at Wonderinterest Trading Ltd.
[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or on the current economic environment, which may change. Such statements are not guarantees of future performance. They involve risks and other uncertainties that are difficult to predict. Results may differ materially from those expressed or implied by any forward-looking statements.
