What: Liontree has collated a series of metrics to understand the dynamics of the 2023 Black Friday edition.

Why it is important: more retailers joined the game, more discounts were granted to more customers: is that sustainable on the long range?

Overview of Black Friday Performance: US and Global Insights

1. Survey Methodologies and Data Sources

Various methodologies were employed to gather Black Friday data. Adobe analyzed over 1 trillion visits to US retail sites, focusing on online retail and excluding in-store purchases. Salesforce's approach included data from 1.5 billion+ shoppers, notably covering 29 of the top 30 US online retailers. Square and AfterPay examined millions of global transactions, while the National Retail Foundation conducted a survey among 3,498 US adults.

1. Thanksgiving Weekend Shopping Surge

The Thanksgiving weekend set new records with 200.4 million consumers shopping, surpassing the previous year's 196.7 million. Global sales during this period increased by 6% y/y, hitting $298 billion. In the US, there was a 7.8% y/y growth in online spending, reaching $38.1 billion, and a 5% y/y increase in sales, totaling $70.8 billion. Black Friday and Cyber Monday saw significant spikes in online sales and traffic, with paid search being the primary driver of these sales.

1. Discounting Strategies and Consumer Behavior

Retailers globally offered average online discount rates of 27%, with the US rates slightly higher at 29%. Categories like makeup, apparel, and skincare saw the highest discounts. Interestingly, the average discount rate increased to -22% from -21% in 2022. Despite the increase in online shopping, the gap between in-store and online shoppers widened, with more consumers opting for online purchases. Black Friday remained the most popular day for both in-store and online shopping, but in-store shopping on the following Saturday saw a decline.

1. Cyber Monday Outshines Black Friday in Spend Growth

Cyber Monday's year-over-year growth in online spending outpaced Black Friday, with a 9.6% increase compared to Black Friday's 7.5%. Discounts reached record highs on Cyber Monday, especially in electronics, with discounts peaking at -31% off the listed price.

1. Future Trends and Inflation Impact

Looking ahead, the season-to-date consumer spend has grown by 7.3%, reaching $109.3 billion online. The full US holiday season online spend is expected to grow by 4.8% y/y. Despite the ongoing discounts, e-commerce prices have fallen for over a year, indicating that the increase in consumer spend is driven by new demand rather than just higher prices.

1. Mobile Shopping and BNPL Popularity

Mobile shopping has overtaken desktop, with 59% of online sales made through smartphones on Thanksgiving. The use of mobile wallets in the US also saw a significant increase. Additionally, Buy Now Pay Later (BNPL) options grew in popularity, with an 8% y/y increase in overall orders and a record high on Cyber Monday.

Black Friday 2023 KPIs: more volumes, more discounts