Adobe reports Black Friday sales rise 7.5%

Aggressive retailer promotions helped push overall online spending to $9.8 billion on Black Friday, or up 7.5%, compared to the same period in 2022, according to Adobe Analytics.

Sales began more than two weeks before Black Friday as retailers sought to woo shoppers with promotional prices in hopes of driving in-store traffic and online purchases.

While shopper traffic was heavier than expected, according to Placer.ai, most shoppers also took advantage of online deals prior to stores reopening on Black Friday, and that continued throughout the weekend into Cyber Monday (Nov. 27).

Adobe expects Cyber Monday spending between $12 billion and $12.4 billion. For Cyber Week – the five days from Thanksgiving and Cyber Monday – online spending is expected to total $37.2 billion, up 5.4% from last year.

MasterCard SpendingPulse reports Black Friday sales were up 2.5% year over year, not adjusted for inflation. The MasterCard SpendingPulse data excludes automotive sales. MasterCard also reported e-commerce sales on Friday increased by 8.5% year-over-year, with in-store sales up 1.1%.

“Retailers are seeing customers across the spectrum become more choiceful and discerning, which includes buying closer-to-need,” TD Cowen analysts, led by Oliver Chen, said in an email note about Black Friday.

But even with record online spending, TD Cowen lowered its guidance for the holiday season from 4% to 5% to 2% to 3%. The National Retail Federation estimates holiday sales will be up between 3% to 4% year over year.

Adobe Analytics also found that consumers using smartphones accounted for $5.3 billion of all online sales on Black Friday, up 10.4% year over year. Consumers using smartphones also accounted for 54% of online sales.

Rob Graf, retail manager at Salesforce, said mobile phone commerce is connecting online and in-store. Graf said the days of getting to a store at five in the morning to take advantage of doorbuster sales are largely over. He said retailers are trying to emulate that urgency online by creating doorbusters for e-commerce and additional benefits for loyalty members to shop early.

Mastercard reported consumers seemed to shop in spurts, with many starting well ahead of Black Friday and then closing to sleep in, watch football, shop online and then get out later in the day to shop at malls and stores on Black Friday.

“Consumers are navigating the holiday season well and taking advantage of holiday promotions, giving them ample choice as they hunt for gifts for everyone on their list,” said Steve Sadove, senior advisor for Mastercard and former CEO and Chairman of Saks Incorporated. “Consumers are also shopping smarter, using all of their tools – from searching across channels to cross-checking on apps and websites – to maximize value while they spend time with friends and family.”