Preliminary insights from Mastercard SpendingPulse revealed that U.S. retail sales, excluding automotive, were up 3.4 percent on Black Friday, November 29, compared to Black Friday 2023. Mastercard SpendingPulse measures in-store and online retail sales, representing all payment types, and is not adjusted for inflation.
“Over the last several years, Black Friday has become more than just one day, but instead a window of time for shoppers to find value. While consumers were enticed by early deals in the days leading up to the Thanksgiving holiday, Black Friday continued to reign as one of the biggest days of the season,” the company said in a media statement.
Focusing on Black Friday, the company observed:
- Online Retail sales increased 14.6 percent, while In-store sales were up a more modest 0.7 percent, compared to Black Friday last year.
- Jewelry, Electronics and Apparel remain the top gift sectors for the holidays, with particular strength in e-commerce for Apparel on Black Friday.
“Black Friday was a good indicator of how the holiday season is positively shaping up,” said Michelle Meyer, chief economist, Mastercard Economics Institute. “Our real-time insights show that consumers are comfortably in the gift-giving spirit as price reductions and deals occur across sectors, supporting budgets for holiday shopping.”
Zooming out to the two-week period ending in Black Friday, a few themes stood out:
- Value is in vogue: While retailers and consumers sought an early start to the season, deals and promotions rolled out on Black Friday appealed to shoppers looking to save on items they value most.
- New ‘fits & kicks: Apparel spending started off the season with relatively stronger activity in-store, but consumers spent impressively online for Black Friday. After an unusually warm Fall, the cool and clear weather was welcomed for the Apparel sector. To complete the outfit, spending on Footwear is tracking stronger than last year at this time.
- Festive feasts & dining delights: Grocery spending saw growth during the holidays as consumers feasted at home in the two weeks leading up to Black Friday while Restaurant spending on Black Friday showed particular strength.
- Regions: Mastercard SpendingPulse saw spending outperform in pockets of the country including Massachusetts, Washington D.C, and Colorado.
“Shoppers are making the most of seasonal deals and enjoying a balance of experiences spending and gifts for all loved ones,” said Steve Sadove, senior advisor for Mastercard and former CEO and chairman, Saks Incorporated. “They’re more strategic in their shopping though, prioritizing promotions that they believe hold the greatest value — opening their wallets, but with more intentional distribution.”
About Mastercard SpendingPulse
Mastercard SpendingPulse measures national retail sales based on aggregated and anonymized Mastercard insights, representing all payment types in select markets around the world.
Image courtesy Nordstrom Rack