Shoppers pass an Indigo Friday 40% Off sign Saturday, Nov. 28, 2020, on Chicago's famed Magnificent Mile shopping district. (AP Photo/Charles Rex Arbogast) Shoppers cast their shadows Saturday, Nov. 28, 2020, as they walk Chicago's famed Magnificent Mile shopping district while a young kid runs by. (AP Photo/Charles Rex Arbogast) Shoppers pass Saturday, Nov. 28, 2020, an open Disney Store that is still partially boarded up from recent vandalism on Chicago's famed Magnificent Mile shopping district. (AP Photo/Charles Rex Arbogast)
Black Friday online sales hit a new record this year as pandemic-wary Americans filled virtual carts instead of real ones.
Consumers spent an estimated $9 billion on U.S. retail websites on Black Friday, according to Adobe Analytics, which tracks online shopping. That was a 22% increase over the previous record of $7.4 billion set in 2019.
Meanwhile, traffic to physical stores plummeted as retailers tried to prevent crowds by cutting their hours and limiting doorbuster deals. U.S. store visits dropped by 52% on Black Friday, according to Sensormatic Solutions, a retail tracker. Traffic was slower in the Northeast and West than in the Midwest and South, said Brian Field, Sensormatic's senior director of global retail consulting.
Jewelry and footwear saw some of the biggest in-person sales declines, according to RetailNext, a shopping tracker. Apparel sales were down 50%, while sales of home goods fell by 39%.
Even with that drop, Black Friday will still likely end up as one of the biggest in-person shopping days in the U.S. this year, Field said. He thinks many people will still shop for the holidays in person, but will choose mid-week days when crowds are smaller. Heavier in-store discounts and concerns about lengthy shipping times could also draw shoppers closer to Christmas.
“Black Friday had a lot to lose, but some of it is going to be distributed throughout the holiday season,” Field said.
One trend that could remain after the pandemic ends is that stores could remain closed on Thanksgiving Day, Field said. Since 2013, a growing number of stores had opened on Thanksgiving to match their competitors and get a jump start on Black Friday. But it's typically not a big day for retailers, and this year many stayed closed. Thanksgiving store traffic was down 95%, he said.
Field said stores may be rethinking the cost of paying employees and opening on Thanksgiving when they could easily make up for those sales online.
“I wonder, now that we're seeing a season where they were able to cut the cord on it, if it will give them pause,” he said.
Adobe expects Monday to be the largest online sales day in U.S. history, with estimated spending of $10.8 billion to $12.7 billion.
One reason for the big numbers is that people are shopping online for things such as groceries and alcohol that they bought in person before the pandemic, Adobe said. As for more traditional gifts, Hot Wheels cars, Lego sets, Apple AirPods, Samsung televisions and video games are among the biggest sellers.
Big retailers such as Walmart and Target benefited from the surge, but small retailers did as well, Adobe said. Sales at big stores surged by 403% on Thanksgiving and Black Friday compared to the daily average in October, but sales at smaller retailers also grew by 349%.
Before you consider Adobe, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Adobe wasn't on the list.
While Adobe currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
MarketBeat has just released its list of 20 stocks that Wall Street analysts hate. These companies may appear to have good fundamentals, but top analysts smell something seriously rotten. Are any of these companies lurking around your portfolio? Find out by clicking the link below.
Get This Free Report