The 2024 Black Friday and Cyber Monday shopping events have highlighted a significant shift in consumer behavior, with e-commerce and online platforms not only complementing but, in many cases, surpassing traditional brick-and-mortar sales.
Cyber Monday 2024 set a new record with online consumer spending reaching $13.3 billion, a 7.3% increase from the previous year's $12.4 billion. This figure exceeded Adobe Analytics' projection of $13.2 billion. From November 1 to December 2, total online spending rose 9% year-over-year to $131.5 billion.
Mobile shopping has become a significant contributor to online sales, accounting for 57% of Cyber Monday's online revenue, which translates to $7.6 billion—a 13.3% increase from the previous year. This marks a substantial rise from 2019, when mobile sales constituted 33% of Cyber Monday transactions.
The "Cyber Five" period—from Thanksgiving through Cyber Monday—saw consumers spending $41.1 billion online, an 8.2% increase from the previous year. Thanksgiving Day online spending hit a new high of $6.1 billion, up 8.8% year-over-year, while Black Friday online sales reached $10.8 billion, a 10.2% increase.
The surge in e-commerce has had a noticeable impact on physical retail. Initial data revealed a 3.2% year-over-year decline in in-store foot traffic on Black Friday, reflecting broader trends of cautious spending and intentional purchasing that have defined 2024.
Despite the decline in foot traffic, overall retail sales on Black Friday increased. Mastercard's SpendingPulse reported a 3.4% rise in U.S. retail sales (excluding automotive) compared to Black Friday 2023. However, this growth was primarily driven by online sales, which saw a 14.6% increase, while in-store sales experienced a modest 0.7% uptick.
Walmart's Performance and Strategies
Walmart has been proactive in adapting to the e-commerce surge, implementing strategies to enhance its online presence and integrate digital capabilities into its traditional retail model. The retailer's 'Black Friday Deals' and Cyber Monday events offered significant savings across various categories, including toys, tech, fashion, and more. The events began online on November 25 for Walmart+ members, with in-store sales commencing on November 29.
Walmart's e-commerce growth has been notable, with a 27% surge supported by ventures like digital advertising and membership programs. The company aims to achieve e-commerce profitability soon, leveraging its approximately 5,000 stores as fulfillment centers to enhance delivery efficiency. This strategy has been instrumental in driving growth and attracting a broader customer base.
Amazon's Performance and Strategies
Amazon reported record-breaking sales during its Black Friday Week and Cyber Monday events, marking the largest 12-day holiday shopping period in the company's history. From November 21 through December 2, Amazon offered extensive deals across various categories, resulting in unprecedented numbers of items sold. Notably, over 60% of sales during this period came from independent sellers, predominantly small and medium-sized businesses.
The company's stock has reached an all-time high, driven by strong Black Friday sales and advancements in artificial intelligence through Amazon Web Services. Despite facing competition from retailers like Walmart, Amazon continues to enhance its retail profitability and expand its market presence.
Emerging Trends
The 2024 holiday shopping season also highlighted the growing influence of social shopping platforms. TikTok's efforts to popularize social shopping in the U.S. proved successful, with TikTok Shop achieving $100 million in U.S. sales on Black Friday 2024, tripling its 2023 figures. Over 30,000 shopping livestreams were viewed in one day, indicating a significant shift in consumer engagement.
Additionally, the use of buy now, pay later services reached an all-time high on Cyber Monday, representing $991.2 million in spending—a 5.5% increase from the previous year. Approximately 75% of BNPL transactions were conducted via mobile devices, reflecting consumers' desire for flexible payment options to manage holiday spending.
Consumers are increasingly gravitating towards online platforms, driven by convenience, early promotions, and flexible payment options. Retailers like Walmart and Amazon have successfully adapted to these changes by enhancing their digital presence and leveraging emerging platforms, reaping significant benefits.
As consumer behavior continues to evolve, the importance of a robust and adaptable e-commerce strategy becomes ever more critical for retailers aiming to thrive in the modern marketplace.
