New Year, New Records

On Friday, November 29, Black Friday shoppers and Cyber Monday shoppers broke new records in the sales, with Black Friday shoppers spending $7.4 billion and Cyber Monday shoppers spending $9.4 billion online, but at the expense of the closure of many stores.

CNN and Adobe Analytics both reported that shoppers broke the record for sales online. Some stores are reporting that they are closing so the customers can buy products online without having to wait in a line. CNN reported that Black Friday shoppers are starting to buy more online than going to the stores themselves. This is due to many stores now having holiday deals that start on Thanksgiving and extend to Cyber Monday and sometimes well into December. Additionally, many stores now have online pickup options which allow more customers to purchase items online without the hassle of going to the crowded stores themselves. The closure of these stores benefits many companies, such as Walmart, Target, Best Buy, and Costco, who are expected to have strong holiday seasons. But these closures are also hindering department stores and mall-based stores that have a higher risk for weak holiday stretchers.

Adobe Analytics reported that Cyber Monday shoppers spent $9.4 billion dollars, a whopping 19.7% higher than last year, with the help of many late-night shoppers shopping between 10 p.m. and 2 a.m. This increase in shoppers benefitted for a 6% increase in the cart size of many shoppers. Also, companies that had more than $1 billion in annual revenue saw a 540% increase in sales compared to an average day while small companies with annual revenue of more than $50 million saw a 337% increase in sales. The forecast for the entire holiday season is to be 143.8 billion, with 81.5 billion spent by consumers that are shopping online.

This year’s Black Friday and Cyber Monday have broke new records at an astonishing amount but also at the cost of closing many brick-and-mortar stores. What new records will next year’s forecast for Black Friday and Cyber Monday break while at the cost of what?