Crowds down for Black Friday as consumers go online

Shoppers across the US were lured to brick-and-mortar stores for Black Friday but this year lacked the usual frenzy, with the biggest sales recorded online.

Holiday crowds outside shops promising big discounts for Black Friday.

Holiday crowds outside shops promising big discounts for Black Friday. Source: AAP

US shoppers have formed long lines at store checkout counters to snap up deep discounts on clothing and electronics on Black Friday.

It's evidence that a healthy economy and rising wages are translating into stronger consumer spending at the start of retailers' make-or-break holiday season.

"I am spending more, the mood generally is more upbeat," said Sharon Neidert, 57, visiting New York City from Ohio. "My daughter moved out this year so I have more disposable income," said Neidert, a manager at a software company.

Nov 23, 2018; Grand Chute, WI, USA; Teresa Black (left) and Alice Keel are dressed for the holidays while shopping on Black Friday at the Fox River Mall in Grand Chute. William Glasheen/USA TODAY NETWORK-Wisconsin via USA TODAY NETWORK/Sipa USA.
Teresa Black (left) and Alice Keel are dressed for the holidays while shopping on Black Friday at the Fox River Mall in Grand Chute. Source: SIPA USA


Online sales were up substantially and traffic looked healthy at stores offering discounts, but detailed numbers on brick-and-mortar holiday sales will not be available for several days.

"Overall, Black Friday doesn't have the sense of urgency as in the past and feels more like a busy regular weekend day in many of the stores," said Dana Telsey at Telsey Advisory Group.



"Many of the promotions were available for the past couple of weeks," Telsey said. "We haven't noticed desperation from any retailer."

Shoppers spent $US643 million online by 10am on Black Friday, with smartphone sales lifting overall online spending by 28 per cent from a year ago, according to Adobe Analytics, which tracks transactions at 80 of the top 100 US online retailers.

US retailers are relying on consumers spending big on Black Friday.
US retailers are relying on consumers spending big on Black Friday. Source: AAP


Online spending is on track to hit $US6.4 billion on Friday, which is likely to either match or surpass last year's Cyber Monday revenue of $US6.6 billion, Adobe said. Online sales on Thanksgiving Day were up 28 per cent at $US3.7 billion.

The National Retail Federation forecast US holiday retail sales in November and December will increase between 4.3 and 4.8 per cent over 2017 for a total of $US717.45 billion to $US720.89 billion. That compares with an average annual increase of 3.9 per cent over the past five years.

About 38 per cent of American consumers plan to shop on Black Friday, and six in 10 expect to make at least half of their holiday purchases on that day, a Reuters/Ipsos poll showed last week.

There was little evidence of the delirious shopper frenzy of Black Fridays from past years, in other parts of the country, especially the northeast, where crowds were thin due to cold weather.

An Athleta clothing store in Tyson's Corner, Virginia, provided hot chocolate with marshmallows to women in line for the dressing room.


Share
3 min read
Published 24 November 2018 7:36am
Updated 24 November 2018 8:19am


Share this with family and friends