2024 Black Friday Shopping Trends
“Black Friday,” as the day after Thanksgiving is called, has not always been a term associated with the start of the busy holiday season. From its origins as the name of a 19
th century market crash to a 1950s term for the traffic and people that strained local law enforcement in Philadelphia, “Black Friday” as we know it did not come to be defined by retail until the late 1980s. This profitable shopping day symbolizing moving from losses (red ink) to profits (black ink). We now know Black Friday as the kickoff to the holiday shopping season.
Black Friday Shopping Is Back
In 2023,
holiday shopping participation surged to 95%, which is a return to pre-pandemic levels. eCommerce continues to dominate this participation with over 90 million consumers shopping online for Black Friday in 2023. U.S. online sales totaled $9.8 billion in 2023, which is a 7.5% increase from the previous year.
Consumers prefer convenience and hassle-free shopping. This includes online mobile purchases, which grew 10.4% in 2023 this accounted for 54% of all online sales. A mobile marketing strategy is critical to retail success. Globally, Black Friday is the largest online shopping day, and 2023 sales generated $70.9 billion.
In other signs that shopping is back, approximately 48% of consumers were saving money specifically for Black Friday, presenting opportunities for targeted promotions. About 84% of Gen Z consumers view Black Friday sales as offering good value, signaling the need for businesses to reach this demographic with exclusive offers and clear messaging.
What to Expect During the Holiday Shopping Season
In addition to the dominance of online and mobile shopping, there are some other
trends that small businesses and consumers should know going into the 2024 holiday shopping season:
Early Shopping
Consumers are no longer waiting for Black Friday to begin their holiday shopping. This means some shoppers start before Halloween to avoid crowds and take advantage of any early deals. Businesses need to plan their promotions to begin earlier. In fact, a Gallup survey revealed that 25% of shoppers began in September 2023. While it’s important to refine audience segments and tailor promotions effectively to not miss these early shoppers, it’s also important that businesses avoid overwhelming consumers with too many deals.
Experiential Gifting
There is a growing preference for experiences over physical gifts. This is especially evident among higher-income consumers. Retail business owners may need to innovate by hosting in-store events than can be gifted as well as enhance the customer experience.
A phenomenon known as
Travel Tuesday, the first Tuesday after the Thanksgiving holiday, is when consumers search for travel deals. In 2023, airline bookings jumped more than 60% on that Tuesday and cruise bookings by more than 50% from the two-week period before and after. Experiential Gifting can explain this spike on Travel Tuesday. More than half of Americans prefer to spend on travel instead of shopping.
A survey by Amex showed that 1 in 3 respondents planned to give an experience to a significant other or their children. Whether it’s travel, entertainment, or an in-store experience, retailers need to be prepared for a consumer preference away from physical gifts.
Buy Now, Pay Later (BNPL)
While inflation has cooled, consumers are still cautious, ffand more consumers may seek BNPL options to manage their purchases. The BNPL feature should be included in promotions and the checkout process, both online and in-store must support BNPL options.
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This material is for informational purposes only and is not legal or business advice. Neither AmTrust Financial Services, Inc. nor any of its subsidiaries or affiliates represents or warrants that the information contained herein is appropriate or suitable for any specific business or legal purpose. Readers seeking resolution of specific questions should consult their business and/or legal advisors. Coverages may vary by location. Contact your local RSM for more information.