Black Friday: Consumers Hit Record Digital Spend

By Peter Aitken

Politics Weekend Editor

ShareNewsweek is a Trust Project member

Consumers spent record amounts online over the holiday period, marking the biggest digital spend on Thanksgiving Day and Black Friday despite broader economic concerns ahead of the weekend.

Consultancy firm Deloitte ahead of Thanksgiving found that consumers intended to rein in spending amid inflation and affordability issues, with expectations of the first drop in year-over-year spending since tracking began in 2020.

However, Adobe Analytics, which tracks e-commerce, found that consumers hit a record spend on both Thanksgiving and Black Friday - though it remains to be seen if overall spending throughout the weekend follows the same trend or not.

Why It Matters

Affordability and cost of living remain the chief reasons many voted for President Donald Trump in the 2024 U.S. presidential election, and after almost a year back in office, those concerns remain high for many voters and ultimately proved crucial in New York City Mayor-elect Zohran Mamdani's shock win over Andrew Cuomo in both the Democratic primary and the November mayoral election.

Trump has tried to address the issue in a number of ways, and recently appeared to dismiss concerns about cost of living as a "con" by Democrats, telling reporters earlier this month, "I don't want to hear about the affordability," claiming his government brought down inflation to a "very low number."

...

What To Know

Adobe Analytics on Saturday announced that U.S. consumers on Thanksgiving spent a record $6.4 billion and on Black Friday spent a record $11.8 billion - the latter of which is a 9.1 percent increase over the previous year.

Adobe also expects shoppers to spend another $5.5 billion on Saturday and $5.9 billion on Sunday before hitting an estimated $14 billion on Cyber Monday, which would set another record.

Video game consoles, electronics, and home appliances saw increases in sales on both days, and social media advertising, as well as shopping services powered by artificial intelligence, helped influence spending choices, according to the firm.

Software company Salesforce added to the rosy estimates by saying that Black Friday digital sales totaled $18 billion in the U.S. and globally hit around $79 billion, while e-commerce platform Shopify said its merchants recorded $6.2 billion in sales worldwide.

Some analysts raised the prospect that these record numbers could be inflated by higher-than-usual prices due to Trump's tariffs on foreign imports, with Salesforce noting that despite the higher overall spend the number of items at checkout on Black Friday dropped two percent compared to last year and order volumes declining one percent overall compared to the same period.

Michelle Meyer, chief economics at the global research and advisory Mastercard Economics Institute, said that rather than outright withholding spending due to economic uncertainty, shoppers chose to take advantage of discounts and sales, ultimately choosing to shop early, leverage promotions, and invest in wish-list items.

The overall economic picture remains unknown, with initial data from real-time foot traffic tracker RetailNext finding a 3.6 percent drop in visits to physical stores on Black Friday compared to 2024 - although that is less than the drop noted in the days leading up to Thanksgiving, which saw a 6.2 percent decline.

What People Are Saying

Chip West, retail and consumer behavior expert at RR Donnelley, told The New York Times: “Despite questions about its relevance due to the prolonged, monthlong promotional season, Black Friday remains the most significant shopping day of the holiday season."

Grant Gustafson, head of retail consulting and analytics at Sensormatic Solutions, told The Associated Press: "Black Friday has really turned into like a full week event, or even further," adding, "Black Friday is really the start of just a really critical stretch for retailers."

What Happens Next

The full picture of economic health won't be clear until full sales numbers for the weekend and Cyber Monday are known, showing the total five-day spend on in-person and online shopping.

This article includes reporting by The Associated Press.

Request Reprint & LicensingSubmit CorrectionView Editorial & AI Guidelines