According to preliminary data from Mastercard SpendingPulse™, U.S. retail sales (excluding automotive) increased by 3.4% on Black Friday, November 29, compared to Black Friday in 2023. Mastercard SpendingPulse tracks both in-store and online retail sales across all payment methods, providing a comprehensive view of consumer behavior. It’s important to note that the data is not adjusted for inflation.
In recent years, Black Friday has evolved from a single shopping day into an extended period of promotions, with retailers starting their deals well ahead of Thanksgiving. Despite this shift, Black Friday itself continues to be a cornerstone of the holiday shopping season.
This year’s Black Friday performance reflects ongoing consumer enthusiasm for holiday deals. Key highlights include:
- Online Sales Surge: E-commerce sales saw a notable increase of 14.6% compared to last year, reflecting the growing trend of consumers opting for the convenience of online shopping.
- Modest In-Store Growth: Brick-and-mortar stores experienced a smaller increase of 0.7% year-over-year, indicating that physical retail remains relevant but faces stiff competition from online platforms.
- Top Gift Categories: Jewelry, electronics, and apparel emerged as the most popular gift sectors, with apparel standing out particularly in the e-commerce space on Black Friday.
Expert Insights on Holiday Spending Trends
Michelle Meyer, Chief Economist at Mastercard Economics Institute, highlighted the positive momentum of the holiday shopping season. “Black Friday was a good indicator of how the holiday season is positively shaping up,” Meyer said. “Our real-time insights show that consumers are comfortably in the gift-giving spirit as price reductions and deals occur across sectors, supporting budgets for holiday shopping.”
Steve Sadove, senior advisor for Mastercard and former CEO and Chairman of Saks Incorporated, emphasized that shoppers are being more strategic with their spending. “Shoppers are making the most of seasonal deals and enjoying a balance of experiences spending and gifts for all loved ones,” Sadove said. “They’re more strategic in their shopping though, prioritizing promotions that they believe hold the greatest value — opening their wallets, but with more intentional distribution.”
Broader Trends Leading Up to Black Friday
Looking at the two-week period ending on Black Friday, several key themes emerged:
- Value-Conscious Shopping: Deals and promotions remained critical in attracting budget-conscious consumers. Retailers that timed their promotions effectively saw strong engagement, with shoppers seeking savings on high-priority items.
- Apparel and Footwear Momentum: The apparel sector showed robust activity both online and in-store. Cooler weather following an unusually warm fall likely contributed to increased spending on seasonal clothing. Additionally, footwear spending is tracking ahead of last year’s levels, complementing apparel purchases.
- Food and Dining Trends: Grocery sales experienced growth as families prepared festive meals at home during the two weeks leading up to Black Friday. At the same time, restaurants saw a significant boost in spending on Black Friday itself, highlighting consumers’ appetite for dining experiences alongside holiday shopping.
- Regional Highlights: Certain regions of the country stood out for their strong performance. States like Massachusetts, Washington, D.C., and Colorado saw higher-than-average spending growth, showcasing localized consumer confidence and engagement.
The Growing Role of E-Commerce
The sharp rise in online retail sales underscores the continued transformation of consumer habits. The 14.6% year-over-year increase in e-commerce sales on Black Friday highlights the convenience and accessibility of online shopping. Retailers with a strong digital presence benefited significantly, particularly in sectors like apparel, where online promotions attracted value-driven consumers.
Despite the dominance of e-commerce, physical stores maintained their relevance, albeit with modest growth. Many shoppers still value the tactile experience of in-store shopping, particularly for items like jewelry and electronics. However, the comparatively lower growth rate for in-store sales suggests that brick-and-mortar retailers need to continually innovate to compete with their digital counterparts.
A Promising Start to the Holiday Season
The data suggests that the 2024 holiday shopping season is off to a solid start. Consumers are actively engaging with promotions while demonstrating a willingness to spend across multiple categories. This balance between value-consciousness and indulgence reflects a holiday season shaped by strategic shopping habits and a desire to celebrate with loved ones.
As retailers continue to roll out deals in the coming weeks, the insights from Black Friday provide a glimpse into broader holiday trends. With strong performances in key categories like apparel, jewelry, and dining, the stage is set for a vibrant holiday season, supported by consumer confidence and strategic promotional efforts.
In conclusion, Black Friday 2024 not only reaffirmed its status as a pivotal shopping day but also highlighted the evolving dynamics of consumer preferences, particularly the growing role of e-commerce. Retailers that can effectively blend online and in-store experiences while offering meaningful value will likely see continued success throughout the holiday season.
