Consumers increased online spend for Black Friday, physical shop sales more subdued

Consumers increased online spend for Black Friday, physical shop sales more subdued
Preliminary data reveals good start to holiday shopping season.
DEC 02, 2024

As Cyber Monday continues the holiday shopping season that escalated in the run up to Thanksgiving with a focus on Black Friday, what has consumer spending looked like and which retailers are the winners and losers?

Two sets of preliminary data suggest that shoppers were keen to spend but the desire for bargains and convenience means online retailers and those main street brands with strong online presence are likely to have benefited most from increased spending.

Mastercard Spending Pulse reveals a 3.4% year-on-year increase in US retail sales on Black Friday, not adjusted for inflation and covering both online and physical stores. Online saw an increase of almost 15% while online stores gained less than 1%.

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

Separate early data from in-store foot traffic analysts RetailNext also showed the challenge for physical stores with overall traffic down more than 3% year-over-year on Black Friday and down almost 1% on Saturday.

“While overall traffic remains subdued, we saw some notable reversals from trends observed throughout the year,” said Joe Shasteen, Global Head of Advanced Analytics at RetailNext.  “Footwear, which experienced year-over-year traffic declines in nearly every month of 2024, showed resilience during Black Friday weekend. Categories like Apparel, Footwear, and Jewelry saw notable traffic increases on Saturday, indicating that consumers are spreading out their purchases.”

One key factor though is the weather conditions in both the Midwest and Northeast, which will have put many shoppers off visiting stores and may have prompted additional online shopping.

CAUTIOUS SPENDING

The Mastercard research also highlights the strength of Jewelry, Electronics and Apparel, with the latter showing notable e-commerce growth.

But it also showed that, with finances still leading to cautious spending behavior, value has been a key consideration in the two weeks leading up to Black Friday weekend.

“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 advisor for Mastercard and former CEO and Chairman of Saks Incorporated. “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.”

Latest News

Advisor moves: RBC swipes $1.7B UBS team, Baird duo departs for LPL's Linsco channel
Advisor moves: RBC swipes $1.7B UBS team, Baird duo departs for LPL's Linsco channel

RBC Wealth Management's latest move in New York adds an elite eight-member team to its recently opened Westchester office.

Stifel star broker, Chuck Roberts, leaves firm under cloud of investor complaints
Stifel star broker, Chuck Roberts, leaves firm under cloud of investor complaints

Stifel – so far - is on the hook for more than $166 million in damages, legal fees and settlements in investor complaints involving Roberts, a 35-year industry veteran.

iCapital secures $820M in latest funding, hits $7.5B
iCapital secures $820M in latest funding, hits $7.5B

The giant alt investments platform's latest financing led by T. Rowe Price and SurgoCap Partners, along with State Street, UBS, and BNY, will fuel additional growth on multiple fronts.

Merrill Lynch on the hook for $3.7M after clients claimed sale of unsuitable private equity
Merrill Lynch on the hook for $3.7M after clients claimed sale of unsuitable private equity

Some investors recently have seen million dollar plus decisions by FINRA arbitration panels involving complex products decisions go their way.

What does it take to feel 'financially comfortable' or 'wealthy' in 2025?
What does it take to feel 'financially comfortable' or 'wealthy' in 2025?

New report shines a light on how Americans view wealth today.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.