Black Friday’s Back – Shopping and Sales Increase From 2021
After the last two years of struggling retail sales due to the pandemic, Black Friday has now resurged with increased sales to beat several marks set previously. The largest news came on the online front from Adobe, where shoppers had spent a new record of $9.12 billion on Black Friday. Online sales were up 2.3% from last year, with increases in electronics and toys contributing a large sum to the historic gain. Mobile orders also set new records, with 48% of all online sales being made on a smartphone, compared to last year’s 44%. On the physical side, in-store traffic had risen 7% compared to last year, but these in-store sales only increased by 0.1% from 2021.
As we approach this week, Cyber Monday is projected to hold large gains as well, estimated to bring in around $11.2 billion in sales, up 5.1% year-over-year. Despite all these gains, several economists still warn of the persisting effects inflation will have on consumer spending. Compared to November 2021, the consumer-sentiment index, which tracks how consumers feel towards the economy, is down 16% year over year. Furthermore, the National Retail Federation has predicted slower sales growth for the months of November and December, the most important months for several retailers. The NRF believes sales will rise 6% to 8%, compared to last year’s large jump of 13.5%. As we get through the holiday season, investors should be vigilant toward all the upcoming retail data as we approach the Fed’s rate hike decision coming on December 14th.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
