As the United States concluded Thanksgiving, the annual "Black Friday" shopping frenzy commenced. This year, physical retail stores experienced a lackluster performance, while online shopping hit a new record. According to Mastercard, in-store sales only grew by 0.7%, and Facteus reported a 5.4% decline in physical store sales. In contrast, e-commerce sales surged by 14.6%, indicating a shift in consumer preference towards online shopping for better deals.
Mastercard economist Meyer highlighted that the majority of consumer spending occurred online due to greater choice and power. Adobe reported that e-commerce prices have dropped for 26 consecutive months, aiding budget-conscious consumers amid inflation. Popular items included toys, appliances, and electronics, with significant discounts and sales spikes. However, health and beauty products saw a 7.2% decline in sales.
RetailNext data showed a 3.2% decrease in nationwide store traffic, with the Midwest experiencing a 7% drop due to snowstorms. Macy's, Kohl's, and Target may see modest sales growth, while e-commerce giants like Amazon and Walmart are expected to benefit significantly.
AI technology played a crucial role in driving online traffic, with AI chatbots increasing retail site visits by 1800%. Salesforce noted a 31% rise in AI-driven online chat services, boosting conversion rates for digital retailers.
