This has been another monumental year for the retail industry, even with high inflation and a looming recession. Despite these conditions, forecasters have continued to remain optimistic that retail sales will continue to grow during the holidays with consumers shopping both in-store and online.
The data from Thanksgiving weekend, historically known as the start of the holiday season, proves that this year is already shaping up to be a successful one.
According to a report from Adobe Analytics, online Black Friday sales topped a record-breaking $9.12 billion. The National Retail Federation also reported that 196.7 million people shopped either in store or online from Thanksgiving Day to Cyber Monday.
NRF CEO Matt Shay stated that the biggest takeaway is that Americans are eager to shop in person again, noting that over 122.7 million people shopped in a brick-and-mortar store over the weekend, a 17% increase from foot traffic last year.
This should come as no surprise as economic forecasters have been predicting a return to in store shopping post-Covid. In October, JLL shared their holiday survey results that indicated over 63% of consumers would plan to shop in store this year, up from 58% in 2021.
US shoppers spent $11.3 billion on Cyber Monday alone, increasing spending 5.8% from last year. Adobe Analytics also reported at the peak, that people were spending $12.8 million per minute on Monday.
So, what can we attribute this successful shopping weekend to as we predict trends for the rest of the year? Deep discounts and shoppers’ urge to return to brick-and-mortar.
“Consumers are out shopping, but they’re out shopping when they see deals and when they get the promotions that meet what it is they’re looking for, and so you can get them engaged, but you’ve got to deliver value and price,” stated NRF CEO Matt Shay.
The National Retail Federation has also credited the strong job market for Americans’ spending habits this holiday season, despite inflation and fears of a recession. While shoppers are returning to shopping in brick-and-mortar stores, it’s important to note that online shopping and BOPIS (buy online pick-up in store) are still huge this year.
We are very excited about this momentum in the retail industry as we gear up for another great year in 2023!