Winners and Losers of Black Friday 2019: A Review of Successes and Disappointments in Retail Sales
The holiday shopping season is in full swing, and this year, it's all about online commerce. Cyber Monday, the traditional online shopping extravaganza, is expected to be the biggest day for smaller merchants, with sales predicted to exceed $9.4 billion, according to Adobe Analytics.
This figure is part of a larger trend, as the entire weekend from Thanksgiving through Cyber Monday is expected to generate over $29 billion in sales, representing 20% of total revenue for the holiday season.
Small Business Saturday also posted a record $3.6 billion in sales, indicating a growing preference among consumers to support locally-owned retailers. In fact, 10% of consumers plan to shop more at such establishments this holiday season.
The shift towards online shopping was particularly noticeable on mobile devices. Mobile orders increased by 35% on Black Friday, with 65% of all e-commerce occurring through mobile devices, according to Salesforce. Adobe Analytics reported that smartphone sales accounted for 39% of all e-commerce sales on Black Friday, a 21% increase from the previous year.
E-commerce giants outperformed smaller retailers in terms of smartphone revenue share and efficiency. However, one out of every five online purchases will be picked up in the store, suggesting that brick-and-mortar stores still play a role in the shopping experience.
Retailers went into Black Friday with concerns due to spending slowdowns in the third quarter. Yet, online sales on Black Friday reached a record $7.4 billion, just shy of last year's Cyber Monday record of $7.9 billion.
Despite the decline in brick-and-mortar traffic and sales, there were some positive signs. The conversion rate increased by 1.7% and shopper yield increased by 2.7%, according to RetailNext.
The weekend between Black Friday and Cyber Monday is emerging as a lucrative period for online commerce. Consumers are increasingly comfortable buying bigger ticket items online, and many retailers, such as Macy's and Kohl's, lowered prices early in an attempt to boost sales.
However, it's worth noting that specialty retailers generally don't have such margin protections compared to mass merchants. This could be a challenge for smaller retailers as they compete with larger players during the holiday season.
Despite the uncertainties, the outlook for Cyber Monday is positive. With record-breaking sales predicted, it's shaping up to be a significant day for online retailers and consumers alike.
