Black Friday Online Sales Set New Record, Brick-&-Mortar Suffering

Retail and Consumer Confidence
05/12/2016 10:13

Black Friday's online sales beat estimates as shoppers moved online for the shopping holiday, with mobile devices driving more purchases than ever, writes Adobe Digital Insights. ADI adds that this year's online sales shattered 2015's record as the convenience of mobile likely spurred more shoppers to make purchases remotely, rather than navigating crowded brick-and-mortar locations. ADI reported total online sales for the period Nov. 1-30 at $43.9B, with total online sales growth at 7.4%. Thanksgiving Day alone saw $1.15B of online sales for y-o-y growth of 13.6%. Adobe reports that 54% of visits and 39% of sales took place using mobile devices. Adobe writes, "Black Friday performance resulted in an incredible $3.34B in online sales with a 21.6% year-over-year growth rate ... Black Friday has made history as the first day to ever generate over a billion dollars in online sales from mobile devices ($1.2B total, 36% of total sales for the day and an increase of 33% YoY).

Cyber Monday continued to grow as well, with expected online sales at $3.39B, good for a 10.2% increase in anticipated growth. The most popular products of the season (Nov. 1 – 28): PlayStation 4 is the best-selling video game console, Pokémon Sun & Moon leads in video game sales, Samsung 4k TV leads in television sales, and iPad Air 2 leads in tablet sales. Business Insider writes that Amazon continued to dominate Black Friday; its orders were up from last year, and its mobile app exceeded sales from 2015's Black Friday and Cyber Monday. They add that traditional retailers, like Macy’s, Walmart, etc., are at risk of losing out on holiday sales as the retail market moves online. These businesses still rely on their physical store locations for much of their revenue, but store performance is struggling as consumers shift online. Looking ahead to next year, omnichannel fulfillment options like click and collect or ship-from-store can help these retailers maximize the use of their brick-and-mortar locations over the holidays, as consumers increasingly rely on digital devices to shop.

ADI adds some interesting tidbits: Last year top online retailers sold over 4,000 miles of Christmas lights, enough to stretch from Chicago to London. The average Christmas tree sold was 6.3 feet, and retailers sold 1.3 million feet online.