As the holiday season approaches, it’s a common perception that retailers must be banking on the last three months of the year to rake in a significant portion of their annual sales. And — while TikTok might have brands believing that Black Friday 2023 was a bust (though it did expose Target’s sneaky little tricks) — you can’t believe everything you see on the internet.
In all actuality, Black Friday 2023 blasted off with a stellar $9.8 billion in online sales, a whopping 7.5% leap from last year, as reported by Adobe Analytics. And the number of people shopping in stores shot up by 4.6%, outpacing the usual crowd traffic we’ve observed throughout the year, according to Sensormatic Solutions. While inflation has dialed back, giving consumers a bit of breathing room, they’re still navigating through a nebula of challenges, like dwindling savings from the pandemic and rising interest rates on loans.
The consultancy firm Deloitte has projected a busy shopping season this year. Its annual holiday survey revealed:
Despite concerns about a looming recession and persistent inflation impacting household budgets, consumers seem determined to enjoy the festive season. Retailers responded to this enthusiasm by launching Black Friday sales well ahead of time, both online and in-store. With inflation still a concern, promotions, and discounts are playing a crucial role in buying decisions. Deloitte’s survey indicates a significant increase in shoppers looking to capitalize on Black Friday and Cyber Monday deals compared to last year.
A notable portion of sales comes from ‘Buy Now, Pay Later’ options, reflecting consumer efforts to manage their finances amidst high inflation and interest rates. The leading categories for Black Friday sales were electronics, toys, and gaming, directly correlating with the extent of discounts offered.
While the holiday quarter remains significant for certain retailers, its overall impact on annual retail sales is less dominant than commonly assumed. The changing shopping habits, influenced by economic factors and the convenience of online shopping, are reshaping the retail landscape, especially during the crucial holiday season.
For ad sellers looking to tap into holiday ad budgets, it may be late in the game, but who knows, by some Miracle on 34th Street supplemental dollars could be had…
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