Black Friday: the ultimate test of consumer endurance. Touted as a day of joy and savings, it seems to have become a blood sport of deal-hunting. Two weeks’ worth of predictions and conjectures on the 2022 holiday shopping season have come and gone, and here we are again, standing at the doorstep of America’s chaotic retail shrine.
This year, we’ve seen a shift—the omni-channel business model is rebalancing itself, likely due to the collective sigh of relief from those who’ve braved the pandemic. This pivot has resulted in a decline of online shopping growth rates. Combine that with inflation, economic uncertainty, and a war in Europe, and voilà! The much-anticipated “return to normal” feels a tad more like a rerun of a bad sitcom—one with a laugh track that’s entirely absent.
But let’s not be such party poopers; consumers appear eager to unleash their wallets this holiday season! If the Black Friday numbers are anything to go by, let’s just say people are apparently still determined to spend money with the fervor of caffeine-fueled squirrels. According to Adobe Analytics, Americans splurged a staggering $9.12 billion online just on Friday—blowing past their expectations of $8.9 billion. As an added twist, this reflects a 2.3% growth from last year. Surprise, surprise!
Now, Adobe Analytics measures e-commerce by tracking transactions at 85 of the top 100 internet retailers in the good ol’ US of A. Editor’s note: they’re not measuring the potato sack races held in local parks. Vivek Pandya, head analyst at Adobe, stated the obvious: “Some shoppers are going back to stores—what a concept!” The pandemic kept many indoors for long enough to make online shopping feel like a Netflix binge-watch that went on a bit too long, and the convenience of shopping from home has become oh-so-valuable.
Let’s break down some interesting stats, shall we? According to Adobe, smartphones were responsible for 55% of online sales on Thanksgiving—eclipsing last year’s meager 51%. Black Friday was projected to hit 53%. Meanwhile, average order values have skyrocketed by 12%, thanks to the blazingly helpful phenomenon known as discounting. Talk about putting the “shop” in “shopaholic!”
Salesforce Takes a Global Stroll
Now, while Adobe keeps us informed about the U.S. retail windows, Salesforce has a bigger picture—and it’s not just the ones gracing the walls at the Louvre. Salesforce’s analysis points to a 12% year-on-year increase in online sales, with an average order value hitting $106. Good luck if you’d like to fill that shopping cart on a budget.
However, inflation isn’t just a buzzword—it’s real. Rob Garf from Salesforce shared with diginomica, “Consumers’ budgets aren’t stretching as far as they used to.” Groundbreaking, I know. U.S. shoppers were down to buying an average of 3.5 items per order—a 2% decrease from last year. So while one might feel fancy buying more expensive electronics, they might be forced to forego that new lip gloss that’s down 15% in price. Oh, the irony!
Going global, Black Friday sales saw a measly 3% bump worldwide. Some regions celebrated their declines with gusto—U.K. and Ireland saw 13% lick their wounds, while the Germans took a loss of 12% and 15% on orders. Meanwhile, Australia and New Zealand are holding the line with just a 1% dip. It’s practically a retail Olympic event at this point—who can survive the sale season with the fewest losses?
On the bright side, consumers across the world seem to be treating discount finds as a high-stakes game. Salesforce reported an average discount rate of 31% both on Black Friday and Thanksgiving, while regions like Eastern Europe saw a jaw-dropping 34% off. Discounts are the new black, darling.
Finally, let’s talk payment methods. Apple Pay is experiencing a surge with a growth of 58% year-on-year—though let’s be real; credit cards are still clinging to life with over half of online orders using them. Even in Japan, where Apple Pay adoption has skyrocketed 23,311%, its market share is statistically negligible because, you know, people prefer classic credit cards.
In conclusion, as we peer into the crystal ball for what’s next, Cyber Monday looms like a looming storm cloud promising another downpour of consumer spending. Adobe projects $11.2 billion in online sales today and a total holiday season figure of $209.7 billion—a slight upward trend from last year. If only “Normal” could return as predictably. At least we’re prepared with our smartphones and shopping carts—how very 21st century of us!
