(Reuters) -Black Friday spending in U.S. retail stores showed a modest increase this year, lagging behind the surge in online sales. Data from Mastercard and other sources reveal that many shoppers preferred using phones and laptops over visiting physical stores. #BlackFridaySpending
Sales at physical stores only grew by 0.7% year-over-year, according to Mastercard’s preliminary estimates. Facteus, a data firm, reported even lower figures, showing that brick-and-mortar sales lagged behind.
In contrast, U.S. e-commerce saw a significant increase of 14.6%, as per Mastercard SpendingPulse, which tracks retail sales across its network. This data also includes estimates for cash and check payments, but inflation adjustments weren’t factored in.
Adjusting for inflation, Jonathan Chin from Facteus pointed out that in-store spending would appear even lower. Their analysis showed online sales grew 11.1%, while in-store sales declined by 5.4%. With inflation, online growth drops to 8.5%, while in-store spending falls 8%.
Michelle Meyer, chief economist at Mastercard Economics Institute, emphasized that while inflation is above 2%, the prices of holiday items like appliances and clothing have remained steady or even decreased in some cases.
Black Friday marks the start of the holiday shopping season, with retailers vying for attention from price-conscious consumers like Corey Coscioni, 58.
Coscioni looked for bargains both online and in Chicago-area stores on Friday, seeking “gifts for everyone: my wife, my daughter, and myself.” His stops included Bloomingdale’s, Macy’s and Anthropologie. “While we’re waiting in line, I’ll be shopping.”
Despite the limited growth in-store, Black Friday spending trends indicate that shoppers are becoming more selective with their purchases. Consumers are increasingly turning to online platforms, where they can easily compare prices and find better deals. This shift in shopping habits is a clear reflection of how technology is reshaping the retail landscape. #BlackFridaySpending
