Black Friday sales hit record highs, but primarily online as Brick and Mortar sales were muted
The shift from brick and mortar buying to online purchases may have finally crossed the Rubicon this year as early numbers show that this year’s Black Friday shopping reached an all-time high, with record sales occurring online, and lower traffic volumes hitting commercial stores.
Thanksgiving holiday sales in¬†the US hit their highest¬† record, led by¬†a solid demand for¬†electronics and an accelerated expansion of¬†consumer credit. The ongoing rise of¬†e-commerce contributed to¬†the robust retail sales as¬†well and this weekend‚Äôs surge in¬†consumer confidence stirs up¬†optimism for¬†the overall performance of¬†the retail sector in¬†the upcoming Christmas season.
According to¬†a report from¬†Adobe Analytics, US retailers posted total earnings of $7.9 billion in¬†online sales alone on¬†Thanksgiving and Black Friday, an increase of¬†17.9 percent compared to¬†a year ago.
On the other hand, brick-and-mortar sales data for¬†the Thanksgiving weekend is not yet available. Observers point out¬†shopper activity in¬†malls was somewhat subdued, as¬†shopping centers featured half-empty parking lots, and shoppers were often spotted leaving retail locations empty-handed. –¬†Sputnik News
Electronics and Smarphone purchases, especially with Apple’s iPhone X, have made up a large portion of the holiday’s primary sales.
Over the past few years consumers have come to realize that it is no longer necessary to travel out to the malls in cold weather and at ungodly hours just to fight over a few deals that are pretty much gone five minutes after the stores open their doors.¬† And in fact retailers are tending to markdown prices on items to even greater discounts two, three, and even five weeks following Black Friday as they take the time to analyze whether sales have corresponded with originally set prices.
With so much access to items on one’s Christmas list available in the comforts of their own home, online shopping is the 21st century equivalent or ordering gifts through catalogs as in years prior.¬† And the convenience of shopping online now is so great that shoppers no longer feel the need to deal with heavy traffic, crowded stores, or even threats of violence by traveling out into the cold to visit a brick and mortar store.
Kenneth Schortgen Jr¬†is¬†a writer for¬†The Daily Economist,¬†Secretsofthefed.com,¬†Roguemoney.net, and¬†Viral Liberty, and hosts¬†the popular¬†youtube podcast¬†on Mondays, Wednesdays and Fridays.¬†Ken can also¬†be heard Wednesday afternoons giving an weekly economic report on the¬†Angel Clark radio show.