E-commerce Shines as In-Store Black Friday Sales Stall

This year's Black Friday saw muted spending in U.S. retail stores, while online sales experienced significant growth. Mastercard reports only a 0.7% increase in brick-and-mortar sales compared to a 14.6% rise online. E-commerce giants benefitted from mobile and desktop purchases as inflation influences consumer habits.

This year's Black Friday shopping event showcased a shift in consumer behavior, with U.S. retail stores seeing muted sales compared to substantial online growth. Preliminary estimates from Mastercard reveal that brick-and-mortar sales grew by a mere 0.7% year-over-year, while online sales soared by 14.6%, highlighting a clear preference for e-commerce platforms.

As inflation continues to impact spending power, in-store numbers remained fragile, according to Mastercard SpendingPulse. Michelle Meyer of Mastercard Economics Institute noted that competitive pricing in popular holiday categories softened inflation's blow. Despite these challenges, digital giants like Amazon and Walmart capitalized on the trend by increasing e-commerce capabilities and delivery options.

The shopping shift is further reflected in data from Adobe and Salesforce, both reporting healthy increases in online sales and highlighting top-selling items ranging from beauty products to electronics. As the holiday season progresses, retailers are gearing up for increased online sales and the ensuing battle to capture consumer attention and spending habits.

(With inputs from agencies.)