Black Friday Sales Hit a Record 9.12 Billion: What Lies Ahead?
Published: November 27, 2022
With Thanksgiving dinner served, and Black Friday Shopping done, what’s next?
Studies have indicated that the Thanksgiving long weekend was more buoyant than expected. Black Friday broke $9 billion in sales for the first time, with online sales of $9.12 billion, according to figures from Adobe Analytics. That’s not all, Salesforce also revealed a whopping $8 billion online sales in its Black Friday spending data from over 1.5 billion global shoppers.
As a point of comparison of those figures, the National Retail Federation has predicted holiday sales growth of 6% to 8%, while another analysis group, Digital Commerce 360, has estimated growth of 6.1% for the period.
On the whole, these predictions indicate that the holiday season may indeed serve as a bellwether for e-commerce and retail sales throughout the end of 2022 and early 2023.
Not only has shopping online extended the days and hours that people shop, but it has also impacted the way people shop. People are no longer queuing up at storefronts to grab discount shopping deals this holiday season. More and more are shopping from the comfort of their home using their mobiles, desktops, and viewing TV.
In Particular, mobile shopping has witnessed strong growth this shopping season. A record 48% of all e-commerce sales on Black Friday were made on smartphones (versus 44% in 2021). Besides on Thanksgiving day, some 55% of online sales were on mobile devices (up 8.3 percent YoY).
Mobile shopping had struggled to grow for many years, as consumers found the experience lacking compared to desktop,” said Vivek Pandya, lead analyst, Adobe Digital Insights, in a statement. Thanks giving this year has become an inflection point, where smartphones drove real growth and demonstrated how much these experiences have improved.
In addition, more shoppers have also embraced the Buy-Now-Pay-Later option to buy desired gifts for family and friends.
Our Point of View
While many expected that there is an impending recession that will soon plague the economy, these figures indicate quite the opposite. Online shoppers didn’t let concerns about inflation or an impending recession keep them from a record-setting Black Friday.
The Thanksgiving and Black Friday sales serve as a good indicator of the overall spending behavior of consumers. And, this trend is likely to continue well through the holiday season including Cyber Monday, Xmas, and New Year.
Since the holiday shopping season has proven to be a hit, marketers and brands should march ahead with optimism. We expect an overarching impact on the following areas as we move forward:
1. Mobile Shopping is Here to Stay – The increasing usage of mobile shopping is a trend that will keep going and mobile will continue to drive traffic and sales. Shoppable Ads should become a regular in campaign media mix.
2. Omnichannel will Rule – While online and mobile shopping raked in a large part of the sales, omnichannel shopping will continue to thrive. Buyers will continue using multiple touchpoints including physical stores, mobile devices, CTV, and social platforms to make a purchase. Models like BOPIS (buy online, pick up in-store) and curb-side pick-up methods are also likely to be preferred for their convenience and speed. Therefore, marketers should strive to create an omnichannel presence and facilitate a seamless journey.
3. Flexible Payment Options Will Win – BPNL is likely to ease the financial pressure in the minds of consumers. BNPL orders jumped 68% during the week of Black Friday. That means we are seeing more prominent signs of a budget-conscious consumer. Nevertheless, consumer spending is still on the rise with more flexible payment options that seem to ease the purchase journey.
4. A Broader Holiday Shopping Window – Unlike the past, people may not be reserving their shopping needs for Black Friday and Cyber Monday, although those are the top two days. With brands coming up with lucrative offers, people have started shopping early this year. We anticipate this trend to become a new normal.
Tap into the Holiday Spirit
Perhaps for the first holiday season since the pandemic, consumers are excited and cheery. So, brands might as well work the holiday magic in their favor and also deploy customer-relationship management tactics after holidays to retain loyalty.
Get Marketing bites delivered to your inbox. Every Friday.
Be the first one to comment.