Black Friday sees online sales increase by 10%

After spending some time with the family this Thanksgiving, it was time for the real fun to begin. I’m sure I was not the only one who was looking at various Black Friday ads in search for the best deals.

While inflation has improved since peaking in 2022, prices remain stubbornly high – nearly 22% above pre-COVID levels. Thanks to the deal-seeking behavior of American consumers, e-commerce and ‘buy now, pay later’ (BNPL) are scoring big this holiday season.

According to Adobe Analytics, American consumers spent a total of $10.8 billion online during Black Friday in 2024 – a 10% increase from 2023 and a doubling of 2017 ($5.0 billion).

The categories which saw some of the strongest discounts were toys (27.8%), electronics (27.4%), televisions (24.2%), apparel (22.2%) and computers (22.1%).

The strong performance in online sales continued through Cyber Monday – the final day of “Cyber Week.” Cyber Monday online sales totaled $13.3 billion, a 7% increase from 2023, according to Adobe Analytics. “Cyber Week” accounted for $41.1 billion (17%) of the estimated $240.8 billion in U.S. online sales for this holiday season, which covers the period from November 1 to December 31, 2024.

‘Buy now, pay later’ (BNPL) – a payment method which allows a consumer to make purchases through interest-free installments – continues to grow in popularity. This holiday season, BNPL is forecasted to account for $18.5 billion in U.S online spending, an 11% increase from 2023 and 27% from 2022.

The current economic environment may explain why BNPL has become increasingly popular. With higher prices and elevated interest rates, BNPL seems like an attractive option when making purchases. As escalated costs for necessities continue to weigh on consumers’ purchase decisions, consumers will continue to exhibit deal-seeking behavior and may lean more on interest-free financing options, like Affirm, AfterPay and Klarna in the future.

One hot product that is expected to drive holiday spending, according to Adobe Analytics, is Harry Potter. Speaking of Harry Potter, did you know that a new Harry Potter store is coming to Chicago’s Magnificent Mile in 2025? For my Nintendo fans out there, were you aware that Nintendo plans to open its second U.S. location in San Francisco’s Union Square in 2025 as well?

Despite the news of some retailers leaving the Magnificent Mile and Union Square, others are committing to those areas. Chicago saw Hershey’s Super Sweet Adventure – a family friendly immersive experience – recently open at Water Tower Place, while luxury retailers like Max Mara, Breitling, and A. Lange & Sohne opened new stores on Post Street in 2024 in San Francisco.

To learn more about retailer activity within prime urban corridors in major markets across the U.S. and Canada, make sure to check out our upcoming City Retail Report which releases on December 10, 2024.