197 million people shopped during Thanksgiving holiday weekend, national retail group reports

Black Friday weekend shopping numbers took a dip, in part because price-sensitive customers took advantage of sales that retailers held earlier, according to a national retail survey.

An estimated 197 million people shopped online and in stores from Thanksgiving to Cyber Monday, down 2% from the record-high estimate of 200.4 million who shopped during the five-day period last year, according to a survey by the National Retail Federation and Prosper Insights & Analytics. The survey of 3,055 adults was conducted online throughout the weekend.

“Of course, lingering inflation, high interest rates and the impact of household budgets from the expenses on the services side continue to cause consumers and households to proceed thoughtfully in the decisions about their spending priorities,” Matthew Shay, CEO of the Washington, D.C.-based NRF, said during a media call Tuesday.

Over the holiday season, shoppers have continued to spend on household needs, and their ability to spend has been supported by a healthy jobs market and wage growth outpacing inflation, he said.

Of those who shopped between Thanksgiving and Cyber Monday, 86% bought gifts, according to the survey, and the average amount they spent was $235, which was $8 more than the average during the span last year.

NRF's survey also shows more people shopped in stores while fewer made purchases online over the Black Friday weekend compared to the period last year.

NRF reported that the number of in-store shoppers on Black Friday rose 7.2% compared to the day last year — 81.7 million vs. 76.2 million — while the number of online shoppers fell 4% to 87.3 million.

The results contradict data from other retail research groups, which reported that their technology detected declines in store foot traffic and increases in online spending over the five-day period.

NRF declined to share its methodology but NRF spokeswoman Danielle Inman said regardless of how retail research groups measured shopper data, the weekend performed well.

"Some groups measure sales through their own IT solutions and capture data on the back end. And for foot traffic, the major players who track this data tend to be very mall focused when we know that physical retail space has evolved and interest in shopping discount has also grown,” Inman said. 

Sensormatic Solutions, a Boca Raton, Florida-based retail technology provider that captures traffic data primarily through camera devices positioned at retail stores’ entrances, reported that Black Friday store traffic was down 6.3% compared to the day last year.

Another firm, RetailNext, a Campbell, California-based shopping analytics company that collects foot traffic data through in-store sensors deployed across tens of thousands of U.S. stores, reported that in-store foot traffic on Black Friday was down 3.2%, “reflecting broader trends of cautious spending and intentional purchasing that have defined 2024.”

Meanwhile, online spending from Thanksgiving to Cyber Monday hit a record high of  $41.1 billion, up 8.2% from the five-day period last year, according to Adobe Analytics, a San Jose, California-based software company.

Shifting significance

Overall spending is projected to slow this holiday season compared to the period last year as price-sensitive shoppers are more cautious in their purchasing, which is more dependent on them finding good deals, retail experts said. In fact, record online spending online over Black Friday weekend was heavily driven by deep discounts, which led consumers to “trade up” to higher-ticket items, Adobe said.

Local retailers reported mixed performance for Black Friday weekend.

The weekend is an important revenue driver for Two Nerds Candle Co., an East Northport candle manufacturer that sells its products wholesale to stores and at retail online.

But business has slowed down this holiday season, a 33% decrease in sales on Black Friday alone, as customers cut back on non-necessities because of inflation concerns, said Kevin Nastos, co-owner of the five-year-old business.

“A candle is a luxury item … so people are cutting back on some of the luxury items,” Nastos said. 

For the last two Black Fridays, children’s clothing boutique Tutti has offered up to 70% off merchandise, the biggest discounts it has had since its founding in 1990, said Mary Francolini, manager of the Greenvale shop.

The sales helped draw a crowd to the store, where people lined up outside before it opened at 10 a.m. Friday, she said.

“We were up a little bit from last year. I would say overall that’s a success,” she said.

Black Friday is still the most-popular day for in-store shopping, but its significance to the holiday retail season is waning, particularly as retailers offer deals weeks or months earlier.

“So, it’s moved from this kind of crucial one-day sales event … it’s almost like a mid-season holiday shopping event now rather than kind of the official holiday kickoff,” said John Mercer, head of global research for Coresight Research, a Manhattan-based retail analysis provider.

Year-over-year Black Friday spending in stores and online rose 3.4% compared to 2.5% in the previous year, according to MasterCard SpendingPulse.

That was an impressive day of spending, considering that so many retailers offered promotions in October, Mercer said.

“I just think the [Black Friday] performance is indicative of quite a solid holiday so far,” he said.

Retail spending in November and December is expected to grow between 2.5% and 3.5% to between $979.5 billion and $989 billion compared to the $955.6 billion spent during the two-month period last year, according to the NRF’s forecast.

Last year, holiday sales increased 3.9% from the 2022 season, according to the NRF.

By Tory N. Parrish

tory.parrish@newsday.comToryParrish1

Tory N. Parrish covers retail and small business for Newsday. She has worked at the Pittsburgh Tribune-Review and Observer-Dispatch in Utica, N.Y.