Initial Thanksgiving holiday sales down 11.3%
WASHINGTON — Black Friday isn't what it used to be. Overall shopper traffic from Thanksgiving Day through Sunday, Nov. 30 dropped 5.2% from 2013 (133.7 million unique holiday shoppers versus 141.1 million in 2013). Total spending is expected to be down by 11.3% to $50.9 billion, down from last year’s estimated $57.4 billion.
Black Friday has lost it punch because of earlier holiday promotions — including on Thanksgiving Day — and the continued growth of online shopping, according to the National Retail Federation's Thanksgiving Weekend Spending Survey conducted by Prosper Insights & Analytics and released Sunday. All told, 55.1% of holiday shoppers were in stores and online over Thanksgiving weekend, down from 58.7% last year. Total shopping, including multiple trips by the same shopper, was also down this weekend (233.3 million versus 248.6 million).
“A strengthening economy that changes consumers’ reliance on deep discounts, a highly competitive environment, early promotions and the ability to shop 24/7 online all contributed to the shift witnessed this weekend,” stated Matthew Shay, NRF president and CEO. “We ... expect this trend to continue in the years ahead.”
The decline in shoppers will extend to Cyber Monday. According to the National Retail Federation’s Cyber Monday Expectations Survey conducted by Prosper Insights & Analytics over the weekend, 126.9 million (52.3%) shoppers plan to shop online on Cyber Monday, down slightly from the 131.6 million who planned to participate last year.
“For today’s shopper, every day is ‘Cyber Monday,’ and consumers want and expect great deals, especially online, throughout the entire holiday season – and they know retailers will deliver,” Shay said. “Retailers will still offer unique deals exclusive to Cyber Monday, but consumers also know shopping on Cyber Monday won’t be their last chance to find low prices and exclusive promotions.”
According to the Thanksgiving Weekend Spending Survey the average person who shopped the holiday weekend spent $380.95, down 6.4% from $407.02 last year. Additionally, more than three-quarters (77.2%) say they took advantage of retailers’ online and in-store promotions to buy non-gift items for themselves or their family, similar to last year’s 76.4%.
Though the overall number of shoppers dropped this year, it remains clear that Black Friday still draws the biggest crowds of the weekend. According to the survey 86.9 million shoppers were in stores and online on Black Friday; nearly one-third (32.2% or 43.1 million) say they shopped on Thanksgiving Day, flat with last year’s 31.8%. Half (51.8%) say they shopped on Saturday and one-quarter on Sunday (25.5%).
Of those who say they did shop on Saturday, three-quarters (75.2%) said they did or planned to shop specifically for Small Business Saturday.
Holiday shoppers weren’t only in stores on Thanksgiving, they were also online, though it seems early online promotions before the big weekend may have taken some of consumer’s spending power with them. According to the survey the average person who shopped over the weekend spent $159.55 online, approximately 41.9% of their total average budget, down 10.2% from $177.67 last year.
Most shoppers say they shopped online on Black Friday (46.7%), though 36.3% say they shopped online on Saturday. Additionally more than one-quarter (26.2%) of holiday shoppers were online on Thanksgiving Day.
Half of holiday shoppers (50.7%), or 67.8 million people, shopped at department stores over the weekend. Additionally, 34.6% (46.2 million) shopped at discount stores and 29.1% (38.9 million) shopped electronics stores. Nearly two in five (39.5%, 52.8 million) said they were online by the weekend’s end.
“Though much shopping has been done by this point, it’s important to remember that there are still many weeks left in the holiday season, and savvy shoppers will continue to look for exclusive prices to purchase holiday gifts,” said Prosper’s principal analyst Pam Goodfellow. “As competition for customer dollars heats up, consumers will be the ultimate winners in the end. Shoppers this year have made it clear that they no longer only value deep discounts on Thanksgiving and Black Friday, they want the entire package from beginning to end – free shipping, early promotions, convenient ways to use their mobile devices and, of course, hard-to-beat online deals.”
The survey found nearly half (47.1%) of shoppers said they looked for information on Thanksgiving weekend deals in advertising circulars, and more than one-third (35%) say they utilized retailers’ emails to keep track of deals; over one-quarter (27.4%) searched online, and one in five (20.2%) said they paid attention to television commercials, which is in line with the percentage of people who say word of mouth helped them find deals (21.3%).
Two in five smartphone owners used their smartphone to make purchase decisions over the Thanksgiving weekend. According to the survey 45.4% of smartphone owners used their device to research products, look up retailer information, purchase items, redeem coupons and use apps to research or purchase items, similar to last year’s 46.4% last year; 47.4 percent of tablet owners have already used or will use their tablet to make purchase decisions, down from 52.1% last year.
Millennials, viewing the Thanksgiving weekend as a social experience, were a large part of the weekend crowds, both in stores and online. The survey found three-quarters (74.3%) of 18-34 year olds had shopped over the weekend, far higher than the 35-54 age group (53.8%) and those 55 and over (39.2%). Adults 18-34 were also more likely to shop at electronics stores (42.1%) and purchase clothing and accessories over the weekend (64.4%). This age group also spent or will spend more than the average adult ($409.45), and 46.4% of what they spent over the weekend was online ($189.84).