Black Friday online sales reached an unprecedented $10.8 billion, surpassing in-store purchases as brick-and-mortar stores witnessed a significant decline in customers.
What Happened: Shoppers in the U.S. opted for online shopping, spending an astounding $11.3 million every minute between 10 a.m. and 2 p.m. on Friday.
According to a report by The New York Post, Adobe Analytics data indicates that AI-powered chat bots played a crucial role in influencing shoppers, with an 1,800% increase in traffic to retail sites from chat bots compared to the previous year.
Vivek Pandya, the lead analyst at Adobe Digital Insights, told the outlet, "Crossing the $10 billion mark is a big e-commerce milestone for Black Friday, for a day that in the past was more anchored towards in-store shopping."
He further added that consumers are becoming increasingly comfortable with mobile shopping and chat bots, painting a promising picture for future online Black Friday sales.
"And with consumers getting more comfortable with everything from mobile shopping to chat bots, we have tailwinds that can prop up online growth for Black Friday moving forward," he added.
Top-selling items included Harry Potter Lego sets, Disney (NYSE: DIS) Princess dolls, makeup, Bluetooth products, and smart watches. Despite inflation worries, shoppers also "embraced higher ticket items."
According to Mastercard SpendingPulse, while U.S. e-commerce sales on Black Friday were up 14.6% from last year, in-store sales were up just 0.7% as brick-and-mortar stores saw an overall drop in customers. The exception was Target (NYSE: TGT), which experienced overnight queues for the launch of its exclusive Taylor Swift book and album.
However, according to Marshal Cohen, chief retail adviser at market research firm Circana, most other stores had a typical shopping day.
Why It Matters: The shift towards online shopping has been accelerated by the COVID-19 pandemic, with consumers preferring the convenience and safety of shopping from home.
The significant role played by AI-powered chat bots in driving online sales underscores the growing influence of technology in the retail sector.
Furthermore, the success of high-ticket items suggests that despite economic uncertainties, consumers are willing to spend on premium products.
The exception of Target's in-store success indicates that exclusive product launches can still draw crowds, hinting at potential strategies for brick-and-mortar stores to compete in the digital age.