Shoppers Turn to Online Deals as Black Friday Sees Shifts

This year, shoppers avoided the cold lines for Black Friday deals, opting instead to browse online amidst ongoing concerns about inflation and the fluctuating U.S. job market.

Those who did venture out early on Friday, like Deontay Phillips, a 26-year-old veteran, were met with disappointment. At a Best Buy in Newport News, Virginia, he felt the discounts fell short of expectations. “It actually wasn’t what I expected,” Phillips remarked. “I probably won’t do this again.”

Consumer research firm Sarkana predicts spending to remain on par with last year, yet unit sales could drop by 2.5%. This essentially means shoppers are spending more money, but getting less — especially for popular holiday categories like toys and electronics.

“Santa Claus is going to show up this Christmas,” remarked Marshall Cohen, Sarkana’s retail advisor, implying that gifts will be fewer under the tree, but consumers will spend about the same as last year.

Thanksgiving spending online saw a boost, rising 5.3% year-over-year to $6.4 billion, according to Adobe Analytics. Interestingly, this rise has made Black Friday itself feel less significant.

While Black Friday had its moments, those enticing doorbuster deals, which once drew crowds in the wee hours, have dwindled. An industry analyst with three decades of experience commented that the signs — fewer cars in parking lots and less traffic at checkout counters — indicate a significant shift in shopping behavior. “This is unlike any other Black Friday,” Cohen stated.

Retail analyst Andy Tsai bluntly expressed, “Black Friday is an outdated concept, now just a point in time.” Acknowledging the economic challenges, he pointed out that many retailers began offering significant discounts as early as mid-October, which contributed to diminished foot traffic on Black Friday itself. Although Walmart and Best Buy weren’t as bustling, Target’s promotion of swag bags for in-store shoppers managed to boost traffic, albeit unusually.

This year’s essential items closely mirrored those from last year, including headphones, popular water bottles, 55-inch TVs, beauty products, and video games for the new PlayStation. Rising food prices are giving holiday budgets a workout, pushing consumers towards deep discounts on everyday necessities like detergent and pet food.

The mood among consumers seems somewhat dim, with U.S. consumer confidence dipping to a seven-month low in November. Households are hesitating on significant purchases like cars and homes, and vacations also appear less likely in the near future, according to the Conference Board.

Furthermore, a report indicates consumer spending during late October and early November fell short compared to the same timeframe in 2023. Cohen noted that initial spending weaknesses may have been influenced by the upcoming 2024 presidential election, which makes 2025 figures seem relatively strong.