Black Friday Recap 2023

U.S. online sales hit a record $9.8 billion, up 7.5% from last year.

Black Friday Recap 2023
Discretionary items are seeing bigger discounts this past month. Image source: Wiser
  • Black Friday Boom: U.S. online sales hit a record $9.8 billion, up 7.5% from last year.
  • Payment Pivots: Shoppers are moving away from store credit cards to flexible options like 'Buy Now, Pay Later', accounting for $79 million in sales.

Retailers faced a double challenge this Black Friday: they needed to entice buyers with deals and grappled with changes in how consumers finance their purchases. The surge in online spending, up by 7.5%, reflects a strategic consumer base, increasingly price-conscious and comfortable with mobile purchases.

Credit Crunch

  • Store credit card originations have fallen by 37% since 2015, while general card originations rose by 33%.
  • The average interest rate for retail cards is a steep 28.93%.

Retail giants are rethinking strategies as store card appeal wanes due to high-interest rates and shifting loyalty. Kohl's, for instance, launched a co-branded card with broader usage options. Others, like JCPenney, are tying card use to loyalty points and installment plans.

For Logistics?: The move towards online shopping and diverse payment options can affect demand patterns, inventory management, and distribution strategies.

Retail discount deflation graph showing a notable 15% price drop across consumer goods categories, signaling a post-inventory glut sale wave.

The recent trends in retail discount deflation, as highlighted by a significant 15% price drop in various categories since mid-November, suggest that logistics professionals may need to prepare for a shift in inventory management and supply chain strategies. The decrease in consumer prices indicates a clearance of excess inventory, which could affect the demand forecasting and distribution plans for the coming year.

Sources: WSJ | CNBC

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