Black Friday Physical Store Sales Turn Out Better Than Expected
29 November, 2017, 01:06 | Author: Melinda Barton
E-commerce giant Amazon gained 0.8 percent as data from Adobe Analytics showed online Black Friday sales rose almost 17 percent from a year ago.
According to Business Insider, the most notable retailers emerging from the holiday shopping scrum include Amazon, Macy's, Gap, Kohl's, J.C. Penney and Walmart.
Still, a sharp rise in online sales brightened the overall outlook for those traditional retailers that have expanded beyond brick-and-mortar outlets, sending their shares higher in day-after-Thanksgiving trading.
Separately, preliminary estimates by data analytics company ShopperTrak said foot traffic decreased less than 1 percent in physical stores when compared to Black Friday 2016.
Brian Field, ShopperTrak's senior director, said that there had been an important amount of debate surrounding the shifting importance of brick-and-mortar retail. In the graph below, the blue line shows the number of those who were actively promoting Black Friday specific discounting campaigns throughout Black Friday week, while the orange line shows the number promoting discounting campaigns that were not explicitly related to Black Friday.
Adobe said Cyber Monday is expected to beat $6.6 billion in internet sales, which would make it the most vital US online shopping day in history yet.
Although a large portion of sales over the last four days were completed via a smart phone or computer, Americans spent just about $1 million per minute on Black Friday, according to e-commerce platform Shopify.
The period between the Thanksgiving holiday and Christmas can make or break a retailer, accounting for up to 40% of annual revenue. Sears Holdings Corp. saw same-store sales fall 17 percent at its flagship chain last quarter and 13 percent at its Kmart brand. Amazon did not provide sales figures for the entire day.
"The holiday shopping weekend was extraordinary for online retailers", Sucharita Mulpuru-Kodali, an analyst for market research firm Forrester, told the Washington Post. That would still mean that only around 15% of all sales are digital if you take into account that the National Retail Federation (NRF) predicted $682 billion in total sales for the season.
The day has become more about the experience of shopping, rather than the actual discounts, said David Bassuk, co-head of retail consulting at AlixPartners Llp.
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