Thanksgiving Weekend Shopping Records: Crowds Increase, Spending Dips

Thanksgiving weekend is synonymous with deal-hunting and bargain-hunting for millions of Americans. In recent years, this period has seen a surge in both online and in-store shopping. While the number of shoppers reached a new high this year, the overall spending fell short of the records set in previous years. Let’s dive into the details of the Thanksgiving weekend shopping trends and explore what influenced consumer behavior.

Record Number of Shoppers

According to the National Retail Federation (NRF), an estimated 200.4 million people, accounting for more than 60% of the US population, participated in the Thanksgiving to Cyber Monday shopping extravaganza. This figure surpassed last year’s record of 196.7 million shoppers. The NRF had initially forecasted 182 million shoppers, highlighting the significant increase in consumer participation.

Shift in Shopping Habits

The way people shopped during the Thanksgiving weekend also experienced a notable shift. Approximately 134.2 million shoppers opted for the convenience of online shopping, utilizing their devices to explore enticing discounts. On the other hand, 121.4 million consumers braved the crowds and ventured into physical stores. This indicates a slight reversal in the previous year’s trend, where online shopping had seen a surge.

Average Spending Declines

Despite the increased number of shoppers, the total amount spent on traditional seasonal gifts, decorations, and food saw a slight decrease. On average, consumers spent $321.41, a decline from the $325.44 spent during the same period the previous year. However, it’s important to note that these figures are not adjusted for inflation. The average spending on gifts alone amounted to approximately $227, significantly below the record average of $361 set in 2019.

“This year for the first time, personal care and beauty items were among the top five most popular gifts purchased over Thanksgiving weekend.” – NRF CEO Matt Shay

Top Purchased Items

Unsurprisingly, clothing and accessories, followed by toys, gift cards, books, and video games, dominated the list of most sought-after products during the Thanksgiving weekend. However, this year saw the inclusion of a new category among the top-gifted items – personal care and beauty products. This shift reflects the changing preferences and interests of consumers.

Importance for Retailers

The Thanksgiving weekend marks the beginning of the year-end gift-buying rush, making it a critical period for retailers. The combined sales of November and December account for approximately 20% of a store’s annual sales. Given this significance, retailers eagerly anticipate strong sales during this period.

Projected Slowdown in Sales Growth

The NRF projects a slowdown in holiday sales growth this year, attributing it to various factors. They anticipate a 4% increase in holiday sales from November 1 to December 31, compared to a 5.4% increase in 2022. Rising prices, the resumption of student loan repayments, and higher interest and mortgage rates contribute to consumers reevaluating their budgets and potentially impacting their holiday spending.

Black Friday vs. Cyber Monday

Black Friday, traditionally associated with in-store shopping, emerged as the most popular day for online shopping, according to the NRF. However, a separate report by Adobe Analytics highlighted Cyber Monday as the preferred day for online shoppers. Online Black Friday sales witnessed a record-breaking $9.8 billion spent, a 7.5% increase from the previous year. On Cyber Monday, consumers spent an even higher amount, reaching $12.4 billion, reflecting a 9.6% increase from 2022.

“Black Friday discounts ranged mostly between 25% and 30%, aligning with retailers’ planned promotions. Deeper sales may entice shoppers further into the season.” – Industry Experts

Tepid Growth in In-Store Sales

While online sales experienced significant growth, in-store sales only saw a modest 1% increase on the day after Thanksgiving, as reported by Mastercard’s SpendingPulse insights. This indicates a shift in consumer preferences towards the convenience and ease of online shopping.

The Aftermath

The Thanksgiving weekend sets the tone for the holiday shopping season, providing insights into consumer behavior and trends. As retailers analyze the data and adjust their strategies, they will aim to captivate shoppers with enticing deals and promotions throughout the season.

Conclusion

The Thanksgiving weekend of 2022 witnessed a surge in the number of shoppers, setting a new record. However, the average spending on traditional seasonal gifts and products experienced a slight decline. This shift in consumer behavior, along with the inclusion of personal care and beauty items among the top-gifted products, highlights the evolving preferences of consumers. As retailers navigate the holiday season, they anticipate a slowdown in sales growth compared to previous years. Black Friday and Cyber Monday showcased the dominance of online shopping, although in-store sales witnessed tepid growth. Ultimately, the Thanksgiving weekend provides valuable insights for retailers as they adapt their strategies to meet the changing expectations and needs of consumers.

“The Thanksgiving weekend shopping trends reveal the evolving dynamics of consumer behavior, guiding retailers to adapt and innovate in the face of changing preferences.” – Expert Analyst

Comparison of Thanksgiving Weekend Shopping Trends