Despite the economic uncertainty, consumers were spending in the week after Thanksgiving to complete some of their holiday shopping and take advantage of the best deals.
This year’s Black Friday online sales in the United States approached a record high of nearly $10 billion, representing a 7.5% increase over last year. Spending on Cyber Monday was expected to reach $12 billion, 9.7% higher than in 2022. The period between Thanksgiving and Cyber Monday recorded the largest number of people ever participating in the seasonal campaign – 200 million shoppers – surpassing last year’s record of 197 million.
US consumers have seen their savings decline 7% since 2021, according to PYMNTS Intelligence. Combine this with cumulative inflation, and the shopping situation becomes clear. Consumers had to take advantage of deals as much as possible and buy on credit.
Merchants and brands have been particularly aggressive in their promotions and in offering payment alternatives. Buy now, pay later (BNPL) usage rose 72% compared to the week before Thanksgiving. PYMNTS Intelligence found that consumers who purchased retail products during Black Friday via BNPL spent 32% more than those who did not.
In tough economic times, ease of payments is important. Twenty-two percent of consumers said they would be willing to switch dealers if they did not provide service Payment of installment The choice of their retail purchases.
Amazon, Walmart And TG Max Their sales saw growth during the start of the holiday shopping season. But many retailers have the opposite experience. The average decline in Black Friday sales was 4% for a sample of 40 major U.S. retailers who had a larger share of their year-to-date sales during the holiday than their peers.
In times of loss of purchasing power, inflationary pressures, and high promotional intensity, merchants ride the wave at different speeds and customers maximize their budgets when they shop. Retailers who know how to capture consumer attention and offer competitive discounts and payment options can take sales share from the competition.
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