This year, Black Friday isn’t just a day, Black Friday sales started several weeks ago and are expected to continue into December! Experts expect it to break records this year as it has turned into a multi-billion-dollar sales event.
In 2023, consumers spent over $9.8 billion on Black Friday alone, with the average shopper spending $313. This year, analysts project sales will reach $10 billion.
In an interview with the Wall Street Journal, Walmart CFO John David Rainey said, “Overall, we are feeling good about [the] holiday.” Rainey stated that “toys are selling well, along with some everyday needs such as tires. Apparel is weaker as unseasonably warm weather has likely delayed some purchases.”
The National Retail Federation’s (NRF) 2024 holiday spending forecast expects an increase between 2.5% and 3.5% over 2023. Experts expect Black Friday and Holiday Sales to be huge this year.
Top Black Friday Statistics and Changing Consumer Habits
• Mobile devices accounted for 25.3% of Black Friday's online sales.
• In 2023, the US witnessed Black Friday sales hitting the $9.8 billion mark.
• Approximately 134.2 million individuals engaged in online shopping during the Black Friday weekend in 2023.
• The average markdown on Black Friday in 2023 was roughly 31%.
• Numerous Black Friday shoppers commence their shopping early, with retail outlets opening as early as 5 a.m.
• High-demand Black Friday products encompass electronics (49%), apparel and accessories (72%), and beauty products (23%).
• 64% of buyers plan to shop online this Black Friday, with 36% scouting for bargains on social media platforms.
Every brand wants to have a stellar Black Friday, and these stats are impressive. They also show how consumer behavior is changing. They highlight the evolution of retail strategies. A good deal is a strong force that drives consumers.
The Evolution of Black Friday
Since the advent of eCommerce and online shopping, Black Friday consumer behavior has changed significantly. Technology and social media are the main drivers of changing consumer behavior.
Black Friday used to be just one day. Now, it has become a big shopping event. It starts weeks before and goes on after the actual day. In fact, Black Friday can be a month-long sales event.
1. In 2023, total spending for Black Friday hit $9.8 billion. This year, analysts project it will hit $10.8 billion.
2. Since 2013, Black Friday's total spending has increased by 460%. It’s no wonder that Black Friday is now a month-long event.
3. Drive Research surveyed over 1,000 consumers. An impressive 75% said they plan to shop online. This is a 7% increase from 2023.
4. Black Friday is the busiest shopping day of the year for in-person shopping days, but not necessarily the best day for a retailer’s profitability.
Retailers have been evolving and adapting their holiday sales to include not only in-person flash deals but also online flash deals. Consumers no longer have to stand in line at 5 am for those flash/limited deals as they are now available online. And, of course, consumers can shop online while they are standing in line. Mobile sales are increasing – in 2022, 24% of online sales happened on a mobile device.
US Consumers – 2024 Stats
The most defining moment in the last decade is unquestionably the COVID pandemic. It changed many industries, but none more than the supply chain industry. Every single product sold has its roots in the supply chain. Images of barren store shelves often put a sense of terror in US consumers. Consumers turned to online shopping because stores were closed or offered limited product availability.
Since the pandemic ended, though, the US consumer has been subject to rising prices, inflation, and stagnant salaries. Despite this, consumer spending has brazenly returned to pre-pandemic levels across all income categories.
According to an October 2024 Federal Reserve report, consumer retail spending has increased an average of 14.7% in 2024.
As inflation eases and wages increase, consumers are spending more.
This is great news for retailers this holiday season and aligns with the NRF’s expected record holiday sales.
Order Fulfillment’s Role in Black Friday
3PLs prep for Black Friday and holiday sales for months. Warehouses fill to capacity, managers hire and train seasonal labor, and IT teams test all systems repeatedly. A 3PL handles orders by quickly picking, packing, and shipping them, often on the same day.
Many 3PLs, like a2b, utilize a labor force and warehouse automation to process these orders as efficiently as possible. However, quickness and efficiency are not the only metrics that matter.
Order accuracy, ensuring the right item is picked, packed, and shipped, is vital to a successful Black Friday sale, or any sale for that matter. Nearly 50% of negative online reviews are about shipping. These negative reviews can hurt a retailer’s brand reputation, prevent repeat customers, and directly lead to lost sales.
Warehouse automation and technology have progressed over the years. For example, a2b Fulfillment has invested heavily in this category to increase efficiency and throughput, while also improving accuracy.
One example of how a2b uses automation to improve accuracy is with check-weigh scales. Packages travel on a conveyor over a scale that captures the weight of the order and compares it to the expected weight. If the package weight deviates from the expected weight, the conveyor diverts the package to a QC station for greater scrutiny. For example, if a consumer ordered 10 pairs of socks, a2b knows exactly how much that shipping package should weigh. The system diverts the package to QC for inspection if the given weight is off in either direction.
Accuracy is just as important as efficiency.
How to Plan for Future Black Fridays
While it’s too late to upgrade your 3PL for the 2024 holiday season, Q1 is an ideal time for brands and retailers to do a post-holiday analysis of their current 3PL. This analysis should include everything from lead time to returns management. You should understand where your 3PL succeeded or failed to determine if it’s time to make a change. Click here for a helpful guide on how to conduct this analysis.
About a2b
a2b Fulfillment is an experienced 3PL with nearly 25 years of proven metrics and success – especially during peak season. With our investments in warehouse automation, technology, and our people, we provide the scalability, accuracy, and efficiency brands and retailers need to succeed.
Contact us today to start a conversation.
