Black Friday Annual Sales Jump 3.4 Percent, Says Mastercard

December 2, 2024 TruthUSA

Cyber Monday is expected to produce a new single-day record of $993 million in Buy Now, Pay Later sales, said Adobe.

Americans spent more money this year on Black Friday sales compared to 2023, indicating a strong holiday shopping season, according to Mastercard.

U.S. retail sales, excluding automotive, rose 3.4 percent this Black Friday compared to last year, the company said in a Nov. 30 statement. “Over the last several years, Black Friday has become more than just one day, but instead a window of time for shoppers to find value. While consumers were enticed by early deals in the days leading up to the Thanksgiving holiday, Black Friday continued to reign as one of the biggest days of the season.”

Online sales rose 14.6 percent compared to last year. In-store sales increased marginally by 0.7 percent.

Michelle Meyer, chief economist at Mastercard Economics Institute, called Black Friday sales a “good indicator” of how the holiday season is shaping up.

“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.”

During the two weeks ending on Black Friday, spending was higher than expected in Colorado, Massachusetts, and the District of Columbia.

Among the top gifts for the holidays were apparel, jewelry, and electronics, with stronger apparel sales online.

“Shoppers are making the most of seasonal deals and enjoying a balance of experiences spending and gifts for all loved ones,” said Steve Sadove, senior adviser for Mastercard.

“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.”

More than 183 million people are expected to shop between Thanksgiving and Cyber Monday this year, according to a survey from the National Retail Federation. This is a “record” number and up more than 18 million compared to five years ago.

The majority of Americans plan to shop in these few days as they believe the deals are “too good to pass up.” Nearly three-quarters said they would shop on Black Friday.

“Younger shoppers are most likely to take advantage of Thanksgiving weekend deals this year, with 89 percent of young adults between 18-24 planning to shop over the weekend,” said Prosper Insights & Analytics executive vice president of strategy Phil Rist.

“The social aspect of holiday shopping is also enticing to this age group, and they are most likely to shop because it’s a group activity that can be enjoyed with friends and family.”

Buy Now, Pay Later

According to data from Adobe, “online retail spending is expected to hit new highs this holiday season. Adobe forecasts consumers will spend a record $241 billion online during the 2024 holidays, up 8.4 percent from 2023.”

More than $107 billion have already been spent on retail shopping this month as of Nov. 29. Some of the hottest products on Thanksgiving were LEGO sets, espresso machines, and fitness trackers. On Black Friday, smart watches, makeup and skincare, and bedding and linens were more in demand.

Pay later schemes are expected to remain strong for the holiday season. So far, $7.6 billion has been spent on pay later shopping with Adobe expecting Cyber Monday alone to see $993 million in such sales, which would be a new single-day record.

A recent study from financial service companies PYMTS and Splitit found that 38 percent of American consumers planned on using pay later offers to treat themselves to gifts this holiday season.

The most popular category for pay later shopping was clothing and accessories, which is estimated to account for 60 percent of such purchases during this period.

“Millennials and parents, in particular, are leveraging pay later options to justify large purchases and better manage their finances,” said Nandan Sheth, CEO of Splitit.

“In fact, 67 percent of parents intend to use pay later options to finance their holiday purchases this year. This season also presents an opportunity for merchants to acquire new customers, as 43 percent of consumers interested in using pay later plans value it enough to influence where they shop.”

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