US Black Friday Spending Sees 3.4% Year-Over-Year Increase in Stores and Online

Muted In-Store Black Friday Sales Contrast with Robust Online Growth

Black Friday spending in U.S. retail stores showed limited growth this year, while online sales surged, reflecting a shift in consumer behavior as more Americans opted for the convenience of shopping via phones and laptops.

Sales at brick-and-mortar stores rose just 0.7% year-over-year, according to Mastercard’s preliminary estimates, while Facteus data indicated an even steeper 5.4% decline. In contrast, U.S. e-commerce sales jumped 14.6% year-over-year, according to Mastercard SpendingPulse, with Facteus reporting an 11.1% increase. Adjusting for inflation, online growth drops slightly to 8.5%, while in-store spending saw an 8% decline.

Michelle Meyer, chief economist at the Mastercard Economics Institute, noted that while inflation remains above 2%, prices for popular holiday items like clothing, sporting goods, and appliances have either decreased or risen modestly over the past year.

Black Friday, traditionally the start of the holiday shopping season, has seen intensified competition among retailers vying for cost-conscious shoppers. Many consumers, like Corey Coscioni from Chicago, shopped both in stores and online for holiday gifts, seeking the best deals.

The shift to online shopping appears to benefit major e-commerce platforms such as Amazon and Walmart, along with emerging players like Shein, Temu, and TikTok Shop. Walmart’s investment in store-to-home deliveries likely contributed to its online growth.

Overall Black Friday spending rose 3.4% year-over-year, according to Mastercard SpendingPulse. Adobe reported that Americans spent $10.8 billion online, up 10.2% from last year, with makeup, Bluetooth speakers, and espresso machines as top sellers. Separately, Salesforce estimated U.S. online sales increased 7% to $17.5 billion, with strong demand for home appliances and furniture.

The holiday season is expected to see a 3.2% increase in overall spending from November 1 through December 24, according to Mastercard projections, though the shorter shopping period this year may challenge some retailers.