Mastercard SpendingPulse: U.S. Black Friday Retail Sales Up 3.4% vs. Last Year

The 2024 Black Friday season has proven to be a strong one for U.S. retailers, with Mastercard SpendingPulse reporting a 3.4% increase in retail sales compared to last year. This growth can be attributed to a combination of factors, including early promotions, consumer preferences, and a robust economy.

As the holiday shopping season kicked off, retailers enticed consumers with early promotions, creating a longer shopping window and driving sales. According to Mastercard SpendingPulse, U.S. retail sales excluding automotive increased 9.5% year over year in October, signaling that consumers were eager to start their holiday shopping early (Number 2). This trend continued through Black Friday, contributing to the overall sales growth.

Consumers, in turn, embraced the convenience and deals offered by e-commerce platforms, driving a 14.6% surge in online sales on Black Friday (Number 1). This shift in consumer behavior is indicative of a growing preference for online shopping, with retailers adjusting their strategies to meet this demand. In-store sales also saw a modest increase of 0.7% YOY, demonstrating a balance between brick-and-mortar and digital shopping experiences.

The state of the economy also played a significant role in the sales increase. A strong job market, with an unemployment rate of 3.7% in October 2023, provided consumers with the purchasing power to engage in holiday shopping. Additionally, consumer confidence, as measured by the Conference Board's Consumer Confidence Index, improved from 122.3 in November 2023 to 125.6 in December 2023, indicating that consumers were more optimistic about their financial situation and willing to spend.



The shift in consumer spending towards experiences, such as dining out and travel, also contributed to the overall retail sales growth. According to Mastercard SpendingPulse, restaurant spending on Black Friday showed particular strength, with a 7.5% year-over-year increase, while travel sectors like Airlines and Lodging experienced double-digit growth compared to last year. This trend suggests that consumers are prioritizing experiences and services alongside their traditional gift-giving activities, thus diversifying their spending habits.



In conclusion, the 3.4% increase in U.S. Black Friday retail sales was driven by a combination of early promotions, consumer preferences, and a strong economy. Retailers' strategic adjustments to meet the demands of the omnichannel shopping era, coupled with a robust job market and consumer confidence, contributed to the robust sales performance. As the holiday shopping season continues, investors should monitor consumer behavior and economic trends to capitalize on emerging opportunities in the retail sector.