{"id":11045,"date":"2023-11-26T06:05:46","date_gmt":"2023-11-26T06:05:46","guid":{"rendered":"https:\/\/dmsretail.com\/RetailNews\/winners-and-losers-of-black-friday-2023\/"},"modified":"2023-11-26T06:05:46","modified_gmt":"2023-11-26T06:05:46","slug":"winners-and-losers-of-black-friday-2023","status":"publish","type":"post","link":"https:\/\/dmsretail.com\/RetailNews\/winners-and-losers-of-black-friday-2023\/","title":{"rendered":"Winners and losers of Black Friday 2023"},"content":{"rendered":"<p> <p><a href=\"https:\/\/dmsretail.com\/online-workshops-list\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-496\" src=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\" alt=\"Retail Online Training\" width=\"729\" height=\"91\" srcset=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png 729w, https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90-300x37.png 300w\" sizes=\"auto, (max-width: 729px) 100vw, 729px\" \/><\/a><\/p><br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><br \/>\n            <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.retaildive.com\/static\/images\/audio_icon.svg?482016190122\" alt=\"\"\/><br \/>\n            Listen to the article<br \/>\n            <span class=\"text-to-speech__button__audio-length\">10 min<\/span><br \/>\n    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"http:\/\/res.cloudinary.com\/dmgi9movl\/video\/upload\/q_1\/v1700942891\/news\/text_to_speech\/winners-losers-black-friday-2023_od7v2p.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have feedback.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<p><span><span><span><span><span><span>Inflation has been a persistent challenge for retailers this year by creating cautious consumers. For weeks ahead of Black Friday, retailers have been encouraging consumers to spend on what is typically considered the busiest and most important day of the year for the industry.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cRetailers are seeing customers across the spectrum become more choiceful and discerning, which includes buying closer-to-need,\u201d TD Cowen analysts led by Oliver Chen said in an emailed note regarding Black Friday.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In response to consumer reticence, retailers seemed to begin promoting their holiday shopping deals earlier than usual, with many major companies <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span><span>offering their deals<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span> over a month ahead of Black Friday.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Consumers spent a record $9.8 billion online on Black Friday,\u00a0according to data from Adobe Analytics.\u00a0That\u2019s up 7.5% from last year.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>But even with record online spend, TD Cowen lowered its guidance for the season, now expecting holiday spend to be up 2% to 3%. Previously, the organization forecast an increase of 4% to 5%, while the National Retail Federation estimated holiday spend\u00a0would be up between 3% to 4% year over year.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>With life largely back to normal for most since the early days of the COVID-19 pandemic, as of publication time, only a few issues had emerged. Early Friday morning, American Dream, one of the largest malls in the U.S., was briefly evacuated for a bomb threat. Operations at the New Jersey mall returned to normal following a law enforcement investigation, which determined there was no imminent threat, Gov. Phil Murphy said in a <\/span><\/span><\/span><\/span><\/span><\/span><a href=\"https:\/\/twitter.com\/GovMurphy\/status\/1728060082401726840\"><span><span><span><span><span><span><span><span>social media post<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>. Mall representatives did not immediately respond to Retail Dive\u2019s request for comment about the situation.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>And some also chose Black Friday and major shopping destinations to <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span><span>make a statement<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span> about geopolitical events. Crowds <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span><span>gathered at shopping centers<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span> in several major U.S. cities to protest the Israel-Hamas War.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>For retailers that didn\u2019t see the performance or engagement they expected, there are likely plenty of good days ahead before the holiday season wraps up, according to Michael Brown, partner and Americas Retail Leader at Kearney.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cNever underestimate the consumer,\u201d Brown said. \u201cThey\u2019ve been very resilient. They will shop. They have obligations to family and other loved ones that they\u2019re going to fulfill the gift list for. If not now, it will get busy out there \u2014\u00a0be ready, they\u2019ll be coming.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Here\u2019s a look at some of what\u2019s happened so far during one of the industry\u2019s most important days of the year.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Winners<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><strong><span><span>Mobile and online<\/span><\/span><\/strong><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>For the first time, mobile shopping is expected to overtake desktop buying this holiday season, according to Adobe Analytics. More than half of spend online (51.2%) will be on mobile devices.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Adobe Analytics also found that smartphones accounted for $5.3 billion of all online sales on Black Friday, up\u202f10.4% year over year. Smartphones also accounted for 54% of online sales. One reason is that improved shopping experiences make it easier to make purchases on mobile devices.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>After a pandemic-era slide, shoppers surged back to buying on mobile, delivering an all-time high for that segment, according to data from Salesforce.<strong><span><span><span><span><span><span> <\/span><\/span><\/span><\/span><\/span><\/span><\/strong>In 2017, mobile represented 61% of digital traffic. That grew to 75% in 2020 and to 79% this year.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cWe see the mobile phone being the bridge that connects online and in-store shopping,\u201d Rob Garf, vice president and general manager of retail at Salesforce, told Retail Dive in an interview Friday.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThe days of getting to a store at five in the morning to take advantage of doorbusters are largely over,\u201d Garf said. \u201cRetailers are trying to emulate that urgency online by creating online doorbusters and some even provided perks to their loyalty members to allow early access to deals. So there is less of an urgency and an importance put on the store via Black Friday.\u201d\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>For Cyber Week \u2014\u00a0the five days from Thanksgiving to Cyber Monday \u2014\u00a0Adobe expects $37.2 billion in online spending, up\u202f5.4% from last year. That represents a nearly 17% share of the full holiday season.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<section class=\"storylines-carousel-wrapper hide-small show-large\" id=\"desktop-carousel\"\/>\n<p><span><span><span><span><span><span>Thanksgiving Day saw $5.6 billion in online spending, up 5.5% year over year, Adobe found.\u00a0Black Friday generated $9.8 billion in online sales \u2014\u00a0up 7.5%\u202ffrom last year. But Cyber Monday is still expected to be the biggest online shopping day of the year, driving a record $12 billion in spending. That\u2019s up about 6% year over year.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Black Friday\u2019s online sales totaled $16.4 billion in the U.S., according to Salesforce.\u00a0Discounting enticed consumers to buy on Friday, driving digital sales up 8% globally and up 9% in the U.S. Salesforce said the retail sectors with the highest online sales in the U.S. on Black Friday were general footwear and handbags (up 22%), sporting goods (up 21%), and health and beauty (up 17%).<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Global data from Shopify also showed strong mobile performance for merchants on that platform. Mobile versus desktop 76% to 24%, respectively.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Although people appear to be spending strong on mobile and online, Adobe found that people, perhaps still feeling the pinch of inflation, are choosing cheaper fulfillment options. On Black Friday, about 80% of all online orders used standard shipping.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><strong><span><span>The calendar<\/span><\/span><\/strong><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Super Saturday, the Saturday immediately before Christmas, will be bolstered by an extra weekend shopping day this year since the holiday falls on a Monday. \u201cSo it could be a very, very big weekend for [retailers] where these consumers that have put off purchasing until the last minute will have two days that they\u2019re not going to work to be able to spend those dollars,\u201d Brown said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<section class=\"storylines-carousel-wrapper show-small hide-large\" id=\"mobile-carousel\"\/>\n<p><span><span><span><span><span><span>But whether the calendar truly affects the bottom line will likely depend on the strength of discounts offered as the season winds down, according to Vivek Pandya, lead analyst with Adobe Digital Insights.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThere\u2019ll be some growth momentum there, but I also think that consumers are in a place where they\u2019re really maximizing this time to do a lot of shopping because of the perception around discounts,\u201d Pandya said in an interview with Retail Dive. That may benefit consumers, Pandya said, by giving them the perception that \u201cthere\u2019s a bit more time for them to get the goods online that they want.\u201d And that in turn, may allow customers to choose different shipping options.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Pandya also called out a possible side effect of promotions and discounts \u2013 when people see a good deal, they might be inclined to buy something for themselves too in addition to buying a gift for someone else, which can also drive revenue up.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>This year\u2019s fiscal calendar may also deliver an added win for retailers. The calendar <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span><span>includes 53 weeks<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span>\u00a0\u2014\u00a0versus the normal 52 \u2014\u00a0for accounting-related purposes, and many retailers have noted the extra days will likely deliver millions of dollars of added revenue for the top line when Q4 and full-year earnings reports start rolling in early next year.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><strong>Discount hunters<\/strong><\/p>\n<p><span><span><span><span><span><span>Back in 2020 and 2021, consumers were flush with stimulus cash and able to spend quickly and heavily, Pandya said. In doing so, that slowed the momentum on Thanksgiving, Black Friday and Cyber Monday.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<div class=\"pullquote\">\n<hr\/>\n<div class=\"pq-hr-wrapper\">\n<p class=\"pq-quote\">\u201cWe call it discount chicken, where it\u2019s always a game between the retailer and the consumer.&#8221;<\/p>\n<div class=\"pq-headshot\"><img decoding=\"async\" class=\"pq-headshot-img-hidden\" src=\"https:\/\/d12v9rtnomnebu.cloudfront.net\/diveimages\/corporate_site\/teampage\/square_profiles\/placeholder-200.png\"\/><\/div>\n<div class=\"pq-speaker-details\">\n<p class=\"pq-speaker\">Rob Garf<\/p>\n<p class=\"pq-speaker-title\">Vice President and General Manager of Retail, Salesforce<\/p>\n<\/div>\n<\/div>\n<hr\/>\n<\/div>\n<p><span><span><span><span><span><span>But momentum and interest in shopping on those days seems to have resumed, Pandya said. Consumers are \u201cwell aware that they\u2019re getting promoted deals all through the season, but they&#8217;re expecting the best absolute deal to fall on Black Friday or Cyber Monday or Thanksgiving. And so that\u2019s really why we\u2019re seeing these days \u2026 renewed momentum,\u201d Pandya said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Garf echoed that sentiment.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Headed into the holiday season, \u201cconsumers have been really diligent and patient with making sure they get the best value. And we see this each year but it&#8217;s even more acute this year,\u201d Garf said.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cWe call it discount chicken, where it&#8217;s always a game between the retailer and the consumer. And the consumer more often than not ends up winning the game of discount chicken. They just wait for the best and final deal.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Garf said retailers leaned into promotions highlighting the start of the season but \u201cdidn&#8217;t come to the table with very attractive deals. And guess what happened because of the economic headwinds and consumers feeling the squeeze? They waited and they waited patiently.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>After patiently waiting, perhaps all year, consumers appeared to make their move this weekend after \u201cfinally seeing retailers step up to the plate,\u201d Garf said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Loser <\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><strong>Doorbuster decline<\/strong><\/p>\n<p><span><span><span><span><span><span>In recent years, it appears that one of Black Friday\u2019s signature elements and draws \u2014\u00a0early morning doorbuster deals at big-box stores \u2014\u00a0have lost some of their urgency, experts said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<div class=\"pullquote\">\n<hr\/>\n<div class=\"pq-hr-wrapper\">\n<p class=\"pq-quote\">It&#8217;s \u201cnot that kick-the-doors-down traffic we used to have on Black Friday in years past.\u201d<\/p>\n<div class=\"pq-headshot\"><img decoding=\"async\" class=\"pq-headshot-img-hidden\" src=\"https:\/\/d12v9rtnomnebu.cloudfront.net\/diveimages\/corporate_site\/teampage\/square_profiles\/placeholder-200.png\"\/><\/div>\n<div class=\"pq-speaker-details\">\n<p class=\"pq-speaker\">Michael Brown<\/p>\n<p class=\"pq-speaker-title\">Partner and Americas Retail Leader, Kearney<\/p>\n<\/div>\n<\/div>\n<hr\/>\n<\/div>\n<p><span><span><span><span><span><span>During Friday store visits in the New York metro area, Brown said he saw strong traffic but \u201cnot that kick-the-doors-down traffic we used to have on Black Friday in years past.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cI think we have the usual attractive Black Friday pricing. But what I think the consumers may be waiting for is for the next move. The retailer-consumer negotiation that\u2019s going on right now with the way they shop and the way they negotiate with their dollars, and we\u2019re going to see who blinks first,\u201d Brown said.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>But Garf added, \u201cthe store isn&#8217;t dead. The store plays a critical role in the digital shopping experience. So rather than having to get to the store at 5 a.m. people can buy online and then pick it up in or around the store when they want, under their conditions.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><p><a href=\"https:\/\/dmsretail.com\/online-workshops-list\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-496\" src=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\" alt=\"Retail Online Training\" width=\"729\" height=\"91\" srcset=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png 729w, https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90-300x37.png 300w\" sizes=\"auto, (max-width: 729px) 100vw, 729px\" \/><\/a><\/p><br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Listen to the article 10 min This audio is auto-generated. 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