US Black Friday shoppers spend $1b online

Black Friday shoppers pour into the Valley River Center mall for the Midnight Madness sale in Oregon. Photo / AP
Black Friday shoppers pour into the Valley River Center mall for the Midnight Madness sale in Oregon. Photo / AP

US shoppers spent heavily online on the crucial Black Friday shopping day, for the first time topping a billion dollars in online sales in a single day, analysts and retailers say.

The four-day Thanksgiving holiday weekend is the kick-off to the US holiday shopping season, and Black Friday has long been considered the critical day that turns retailers' books from red to black.

Consumer spending makes up more than two thirds of US economic activity. So the short but busiest consumer sales season has a huge importance to the US economy for the whole year.

This year, online shoppers spent a grand total of US$1.042 billion ($1.2 billion) on Friday, surpassing last year's Black Friday haul by 26 per cent, according to the consulting firm Comscore.

Another study by IMB Benchmark Digital Analytics saw an increase of 21 per cent in internet sales, with a surge in orders of mobile devices and tablet computers, in particular.

But the new record might be short-lived.

Coming next is "CyberMonday", the day Americans go back to work and online retailers launch heavy promotions to reel in more shoppers.

"According to norms we've observed over the past three years," retail analyst ShopperTrak said, the Monday after Thanksgiving "should be the heaviest online shopping day of the season with sales approaching US$1.5 billion or even higher".

Across the four-day weekend, US shoppers spent US$59.1 billion, a jump of 13 per cent over the previous year, the National Retail Federation announced.

"It's phenomenal," NRF director Mathew Shay told reporters at a press conference, saying the numbers bode well for the holiday season despite the still-struggling economy.

American consumers spent an average of US$423 this weekend, compared to US$398 last year, the group reported.

However, the NRF did not revise its prediction for the US holiday shopping season as a whole, keeping it at a 4.1 per cent increase year on year, arguing that consumers remain cautious about the economy.

The looming threat of the "fiscal cliff", which could send taxes soaring if Republicans and Democrats do not reach a compromise on reducing the deficit before the end of the year, also had the retailers worried.

And despite the good numbers overall, sales at brick-and-mortar locations were sluggish on "Black Friday:" in-store traffic increased by 3.5 per cent on Friday with more than 307 million visitors, but total sales actually went down compared to the previous year by 1.8 per cent, according to ShopperTrak.

- AFP

© Copyright 2014, APN New Zealand Limited

Assembled by: (static) on red akl_a1 at 30 Aug 2014 18:43:30 Processing Time: 592ms