The beneficiaries and disadvantaged of Black Friday 2023

Winners

Mobile and online

This holiday season, for the first time, mobile shopping is poised to surpass desktop purchases, as projected by Adobe Analytics. More than half of all online expenditure (51.2%) is anticipated to occur through mobile devices.

According to Adobe Analytics, smartphones accounted for $5.3 billion in total online sales on Black Friday, marking a 10.4% increase year over year. Additionally, smartphones contributed to 54% of online sales, with one factor being the enhanced shopping experiences that streamline purchases on mobile devices.

Following a decline during the pandemic, consumers surged back to mobile buying, reaching an all-time high in this segment, based on Salesforce data. In 2017, mobile constituted 61% of digital traffic, climbing to 75% in 2020 and peaking at 79% this year.

Rob Garf, vice president and general manager of retail at Salesforce, highlighted, “We see the mobile phone as the link between online and in-store shopping.” He also noted a shift away from the traditional early-morning store rush for doorbusters, stating that retailers are replicating the urgency online by introducing virtual doorbusters. Some even offered perks to loyal members, granting them early access to deals, thereby reducing the significance of physical stores on Black Friday.

During Cyber Week—from Thanksgiving to Cyber Monday—Adobe anticipates online spending to reach $37.2 billion, a 5.4% increase from the previous year. This represents almost a 17% share of the entire holiday season.

On Thanksgiving Day, Adobe observed a $5.6 billion surge in online expenditure, marking a 5.5% increase year over year. Black Friday then recorded a striking $9.8 billion in online sales—an uptick of 7.5% compared to the previous year. However, the pinnacle of online shopping is anticipated to be Cyber Monday, projected to drive a groundbreaking $12 billion in spending, an approximate 6% rise from last year.

Salesforce reported that Black Friday’s online sales in the U.S. reached $16.4 billion. Discounts lured consumers, propelling digital sales up by 8% globally and 9% in the U.S. Among the sectors, general footwear and handbags saw a 22% surge, sporting goods rose by 21%, and health and beauty climbed by 17% in online sales, as per Salesforce.

Shopify’s global data highlighted robust mobile performance for its merchants, with mobile accounting for 76% of sales compared to desktop’s 24%.

Despite robust spending in mobile and online realms, Adobe observed a trend where individuals, potentially impacted by inflation, opted for more affordable fulfillment choices. On Black Friday, roughly 80% of all online orders opted for standard shipping.

Loser

Doorbuster decline

In recent years, experts note a shift in one of Black Friday’s iconic features—the early morning doorbuster deals at major retailers—which seems to have diminished in urgency.

While witnessing robust foot traffic during store visits in the New York metro area on Friday, Brown observed, “We’re not seeing that rush-through-the-doors fervor that defined Black Friday in previous years.”

“There’s the usual allure of Black Friday pricing, but consumers might be waiting for the next move—a sort of negotiation between retailers and consumers in the way they shop and spend their money. We’re in for a standoff to see who makes the first move,” speculated Brown.

Contrarily, Garf emphasized, “The physical store isn’t obsolete. It still holds a crucial role in the digital shopping landscape. Instead of needing to be at the store by 5 a.m., people now have the option to buy online and then pick up their purchases in or around the store at their convenience, on their terms.”