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HomeMarketStrong Black Friday Sales Are Expected Through the Weekend

Strong Black Friday Sales Are Expected Through the Weekend

While many shoppers hit the stores, consumers also made purchases online for products that included electronics, smart home items and audio equipment.

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Brandon Bell/Getty Images

Black Friday shopping set records this year, with more consumers snagging deals from the comfort of their own homes.

Consumers spent a record $9.12 billion online on Friday, up 2.3% from last year, according to Adobe (ticker: ADBE). Strong spending is expected through the weekend and into Cyber Monday.

Electronics, smart home items, and audio equipment were among the drivers of that online growth. Toys and exercise equipment sales also rose. Popular items on holiday wish lists included Fortnite,
Roblox,
Xbox Series X, drones, Apple MacBooks and Dyson products,
Adobe
says.

In the face of higher prices and inflation, consumers opted for more flexible payment methods like Buy Now Pay Later—orders soared 78% this week compared to the previous one.

“As Black Friday hit record spending online, we’re also seeing more prominent signs of a budget-conscious consumer this year,” said Vivek Pandya, lead analyst,
Adobe
Digital Insights.

This year’s Black Friday follows a mixed bag of recent retailer stock performance. Companies have been dealing with supply chain problems, inflation and balancing inventory levels with varying degrees of success. Target (TGT) missed on earnings. Best Buy (BBY) beat.
Walmart
(WMT) and Bath & Body Works (BBWI) raised their outlooks. Abercrombie & Fitch (ANF) surprised with a profit, while analysts had forecasted a loss.

Shopify
reported that Black Friday online sales peaked at midnight Eastern Standard Time. The firm said apparel and accessories emerged as the top product category, and the average cart price was $113.25.

And gone are the days where deals were limited to one day. This weekend brims with opportunities to snap up purchases.

Saturday, known as Small Business Saturday, may aid smaller retailers who have been feeling the impacts of a volatile market—their online sales are growing three times less than larger players in the space, Adobe said.

Slashed prices will be another common sight this weekend, with discounts on apparel, toys, sporting goods and televisions. Cyber Monday will see promotions on computers and furniture, and appliance discounts are said to peak Dec. 1.

Curbside pickup was used in 13% of all online orders on Black Friday—for retailers that offer the service—compared to 21% last year, Adobe says, adding that it’s a sign of the lingering effects of Thanksgiving Day, when many stores were closed.

However, orders from curbside pickup were up 35% between Nov. 19 to Nov. 25, from the prior week, reflecting the value of physical storefronts for retailers as fulfillment centers, Adobe says. 

While in-store traffic seems to be stronger this year than last, it hasn’t returned to prepandemic levels, says Piper Sandler’s Edward Yruma. “The historic raucous atmosphere of Black Friday may be in the past,” he said. That could be because retailers shifted their promotions earlier in the year.

Adobe anticipates that this weekend, consumers will spend more than $9 billion online, and Cyber Monday is expected to rake in $11.2 billion, an increase of about 5% year over year.

With numbers like that, it may be a jolly holiday for retailers and customers alike.

Write to Emily Dattilo at emily.dattilo@dowjones.com

Credit: marketwatch.com

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