Despite the pressures of slowing hiring and rising prices in the US economy, this year’s Black Friday consumer momentum remains strong, with both online and in-store shopping bustling across the country. The latest data shows that shoppers are being thrifty on one hand and still maintaining holiday shopping traditions on the other, resulting in robust online shopping and heavy foot traffic in major shopping malls.
According to Adobe Analytics, as of now, US consumers have already spent about $8.6 billion online on Black Friday, with expected total sales reaching $11.7 billion to $11.9 billion for the day. Online sales for Cyber Monday are projected to reach $14.2 billion, a 6.3% increase from last year, surpassing Black Friday to become the biggest online shopping day of the year.
From November 1 to 23, online spending in the US has reached $79.7 billion, a 7.5% year-over-year increase. Online spending on Thanksgiving Day alone was $6.4 billion, a 5.3% increase from the previous year.
The National Retail Federation (NRF) points out that online transactions now account for more than 30% of overall holiday sales, up from 15% in 2012, indicating the continued growing influence of online shopping.
At the same time, several major retailers have reported a noticeable resurgence in in-store shopping.
The Mall of America in Minnesota stated that within the first hour of opening on Black Friday morning, it attracted about 14,000 visitors, with long queues forming outside the stores since 3 p.m. the previous day.
Jill Renslow, the marketing director of Mall of America, said, “We are experiencing one of the best Black Fridays ever.”
The Westfield Garden State Plaza in New Jersey also reported strong foot traffic, and to prevent customers from waiting in the cold, they opened an hour earlier than usual.
Retail giant Target, upon opening at 6 a.m., gave gift bags to the first 100 customers and successfully drew crowds, with an average of about 150 customers lining up at each store.
Macy’s flagship Herald Square store offered up to 50% off on apparel, shoes, and cosmetics, attracting crowds of people who rushed in as soon as the doors opened at 6 a.m.
However, some analysts suggest that while Black Friday still attracts in-store shoppers, the convenience of online shopping has eroded the event’s unique status.
Marshal Cohen, Chief Industry Advisor at market research firm Circana, noted that despite the strong foot traffic, this year’s Black Friday seems different from the past. “The traditional Black Friday that we’re used to no longer exists,” he said. “There’s no longer that sense of urgency to buy.”
Many respondents expressed that while they are more cautious due to prices and the economic environment, it hasn’t deterred them from holiday shopping.
The Lakeside Shopping Center near New Orleans even offered champagne for free to shoppers who spent over $50, enhancing the festive atmosphere of shopping.
Sandra Lemoine, a senior shopper, said, “The economy is not good, but you still have to celebrate. Everyone is consuming within their own budget.”
Some consumers admitted to being more careful this year, concerned about overspending. Grace Curbelo from New Rochelle, aged 67, told Reuters, “I’m much more cautious now. I’m not sure where the economy is going, and I don’t want to get into debt.”
Adobe Analytics highlighted that the strong growth in spending is driven by better than expected deals and deeper discounts. Many people took advantage of the significant discounts on Black Friday to purchase needed items.
According to on-the-ground interviews by reporters, the Citadel Outlets near the 5 Freeway in California, an economically-friendly outlet mall, also saw a large crowd as early as 6 a.m.
By noon, the 700,000-square-foot shopping center with over 130 stores and restaurants was jam-packed, with long lines forming outside nearly every store. Many shoppers consisted of families, each carrying numerous shopping bags.
Maria, who arrived early at the mall to start her shopping spree, told reporters that with Christmas and New Year approaching, her family needed to buy lots of clothes, shoes, and gifts. The Citadel Outlets already offered great prices, and Black Friday deals made it even better. So, the whole family went out to choose their favorite items.
“Because many things are expensive now, so each of us has planned ahead and waited for Black Friday to make big purchases, taking advantage of such great discounts, especially the additional discounts, which are very cost-effective,” she said.
High prices still pose pressure on the overall market. According to the Tax Foundation, the tariffs implemented by President Trump have increased retail prices by about 4.9%. Early data from Salesforce also indicates that the average online item price in the US is 8% higher than last year, surpassing the global average increase of 5%.
Nevertheless, the purchasing power of high-income households remains robust. Moody’s Analytics noted that the top 10% of US households by income now account for approximately 48% of the country’s consumer spending, a substantial increase from the mid-1990s figure of 35%.
Retail executives point out that demand from high-income families for items like furniture and luxury goods remains resilient, serving as a vital support for this holiday season.
(Parts of this article were referenced from reports by Reuters and the Associated Press)