By Karina Masolova
Retail sales for Black Friday and Thanksgiving Day saw a channel shift expected to stay strong throughout the holiday season. Ecommerce sales were up, accounting for roughly a quarter of sales over the two-day period. And needless to say, over the weekend and into Cyber Monday, computer- and mobile-based sales only grew.
Internet analytics firm comScore reported that digital sales on Thanksgiving Day and Black Friday reached $4 billion this year, up 20% from 2014. Although surprised at ecommerce’s leap, Sarah Quinlan, SVP Market Insights at MasterCard Advisors, expects that the trend will hold. She notes that consumers are shying away from buying physical goods in favor of experiences. Brick and mortar retailers who offer experiential shopping have seen greater success so far. This might mean anything from allowing shoppers to test drive products (in person or through interactive means), to building a brand through social media, to offering extensions like complimentary yoga classes and eateries.
PwC also noted that experiential shopping is a key seasonal trend, identifying millennials as the most eager shoppers. Not only are they heading out to stores, but they are relying more on their mobile devices both in-store and out.
For retailers banking on strong Black Friday sales to bolster overall holiday sales, they saw average results at best. In-store revenues fell slightly to $12.1 billion in stores, according to ShopperTrak. However, traditional retailers with a strong online presence made up for the dip in digital sales. With a majority of U.S. shoppers preferring Amazon over traditional retailers for holiday shopping (51% plan to buy from the online-only retailer, according to a Reuters/Ipsos poll), some analysts are cautioning traditional retailer to slow down efforts at expanding their B&M presence.
JPMorgan retail analyst Matt Boss noted several exceptions to the sluggish holiday season like athletics brands (particularly Nike) and TJX stores that create a “treasure hunt,” experience by offering a wide variety of limited merchandise. And toy sales are only expected to go up.