By Laura Sanicola
The artificial intelligence boom is reshaping Black Friday, too.
U.S. e-commerce sales on the unofficial shopping holiday hit a record this year, with online spending hitting $10.8 billion, up 10.2% from 2023, according to Adobe Analytics.
Generative AI chatbots played a starring role in the retail bonanza, driving an 1,800% surge in retail site traffic compared to 2023, Adobe said. These tools, which mimic human conversations to help shoppers find deals, compare products, and check out faster, became essential for bargain hunters navigating this year's online frenzy.
"Digital retailers who are using generative AI and agents in their customer service experiences saw a nine percent higher conversion rate compared to those who are not," said Caila Schwartz, director of consumer insights at Salesforce, in a statement. "For an industry that is often concerned with margins, especially ahead of rising costs in 2025, this percent increase is a game-changer."
The use of AI-enabled online chat services grew 31% year-on-year on Black Friday, according to Salesforce. Their data showed U.S. Black Friday online sales at $17.5 billion, up 7% year-over-year.
The difference between Adobe and Salesforce's numbers comes down to how they collect and analyze data. Adobe focuses on tracking actual online transactions in the U.S., based on visits to retail websites and millions of specific products. Salesforce takes a broader approach, using data from over 1.5 billion shoppers across 89 countries and applying models to estimate trends for the wider retail industry.
American shoppers continued to eschew the physical Black Friday shopping experience, with foot traffic dropping 3.2% nationwide compared to 2023, according to retail analytics firm RetailNext.
Shoppers also leaned heavily on their smartphones, with mobile accounting for 55% of all online sales, totaling $5.9 billion — up 12.1% year-over-year, according to Adobe. Mobile wallets made checkout seamless, growing 41% in usage, while buy now, pay later (BNPL) services captured $686 million in sales, with nearly 80% of BNPL transactions happening on mobile, they added.
The Midwest, pummeled by snowstorms, saw foot traffic plummet 7%, while other regions posted smaller drops: 3.5% in the South, 3.2% in the West, and 2.1% in the Northeast , according to RetailNext.
"Health & Beauty, which had remained relatively steady throughout the year, saw a surprising 7.2% drop — a stark contrast to the +13.3% surge in Black Friday 2023," according to Joe Shasteen, RetailNext's global manager of advanced analytics. Inflation-fatigued shoppers, facing higher costs of living, were also more likely to spread out their purchases across extended holiday sales, further reducing the rush to brick-and-mortar stores, he added.
E-commerce prices have fallen for 26 consecutive months, helping stretch budgets and drive demand even amid inflation, Adobe reported. Online, toys stole the spotlight, with sales surging 622% compared to October, driven by must-haves like Harry Potter LEGO sets, Wicked toys, and Disney Princess dolls.
Big-ticket items, such as appliances and electronics, were also top performers as consumers took advantage of discounts, which peaked at an average of 27.8% off for toys, 27.4% for electronics, and 22.2% for apparel, according to Adobe. However, average U.S. discounts fell 3% from last year, according to Salesforce.
As Cyber Monday approaches, online momentum shows no signs of slowing and inflation no sign of biting. Salesforce expects U.S. shoppers to spend nearly $13.5 billion, nearly $1 billion more than last year. Adobe projects Cyber Week — the 5-day period including Thanksgiving, Black Friday and Cyber Monday — will drive $40.6 billion in online spending, up 7% from last year.
"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," said Vivek Pandya, lead analyst of Adobe Digital Insights.
Write to Laura Sanicola at laura.sanicola@barrons.com
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