Speaker 1: 0:19

Hey everyone, welcome to your deep dive on Black Friday 2024. We're going to be breaking down this retail dive article Winners and Losers of Black Friday 2024. And you know really, just kind of seeing what it tells us about where retail is at right now. I mean, is Black Friday even a thing anymore? You don't really see people camping out in front of stores like they used to.

Speaker 2: 0:39

Yeah, it's interesting to see how it's all playing out, especially, you know, with the economy the way it is. Inflation's still sticking around, there's all this talk about new tariffs, and I think a lot of people are just being careful with how they spend their money.

Speaker 1: 0:51

Yeah, for sure. Even Nordstrom is seeing like a slowdown in their sales. It kind of feels like everyone's just holding their breath a little.

Speaker 2: 0:58

Absolutely. And speaking of uncertainty, MasterCard's data shows that retail sales overall in the US were up 3.4 percent compared to last year. But here's the thing that number doesn't account for inflation.

Speaker 1: 1:10

OK, so let me get this straight Sales are up, but inflation is eating away at everyone's budget. So is it really growth?

Speaker 2: 1:17

Well, that's the million dollar question, isn't it?

Speaker 1: 1:19

Yeah, I mean, it's like getting a raise, but then your rent goes up even more.

Speaker 2: 1:22

Right, not exactly something to celebrate.

Speaker 1: 1:30

No, not really, but here's where things get interesting. Block, the company behind Square. They found that people's online shopping carts were twice the size of in-store carts.

Speaker 2: 1:36

Hmm, that really says something about how much we're all shopping online these days. I mean, people are clearly comfortable buying a lot more online. Makes you wonder why, though?

Speaker 1: 1:45

I think part of it's got to be convenience, but maybe people also feel like they can find better deals online, or maybe they just want to avoid the crowds, you know.

Speaker 2: 1:53

Yeah, it's probably a mix of all those things, but get this. Adobe found that online spending peaked between 10 am and 2 km Eastern time on Black Friday.

Speaker 1: 2:01

Wow am and two commuters Eastern Time on Black Friday. Wow, so people are shopping on their lunch breaks.

Speaker 2: 2:05

Maybe, or maybe it's just the super organized shoppers who are up early and grabbing those deals Makes sense. But no matter how you slice it, online shopping was the clear winner this year. Oh for sure, Salesforce and Adobe both reported some pretty significant online sales growth 7% for Salesforce and 10.2% for Adobe.

Speaker 1: 2:23

That's huge. Yes, and get this. Adobe also announced that online Black Friday sales crossed the $10 billion mark for the first time ever.

Speaker 2: 2:32

Yeah, that's a big deal. And one of their analysts, vivek Pandya. He actually said that Black Friday is becoming increasingly digital.

Speaker 1: 2:40

I mean, I can barely even remember when Black Friday was mostly an in-store thing.

Speaker 2: 2:43

Yeah, me too.

Speaker 1: 2:44

I think things like mobile shopping and AI tools are really changing the game.

Speaker 2: 2:49

Speaking of AI, it's crazy to think that it drove over $14 billion in global online sales just on Black Friday.

Speaker 1: 2:57

It's amazing how much influence AI has in retail these days. Salesforce found that retailers who were using generative AI you know the kind of AI that can create things like product descriptions those retailers had a 9% higher conversion rate.

Speaker 2: 3:11

So they're basically getting a 9% boost just from using AI.

Speaker 1: 3:14

Pretty much, yeah, and someone from Salesforce, Kyla Schwartz, I think her name was. She called it a game changer for retailers, especially for the ones who are really focused on their profit margins.

Speaker 2: 3:23

And don't forget about chatbots. Adobe saw a huge increase in people using chatbots on retail websites. They're using them to find deals and track down specific items, even to get brand recommendations.

Speaker 1: 3:36

It's kind of like having a personal shopper right in your browser.

Speaker 2: 3:38

Exactly.

Speaker 1: 3:39

So let's talk about something that really surprised me Toys. Remember how the toy industry was struggling last year.

Speaker 2: 3:45

Yeah, sales were down like 8%.

Speaker 1: 3:47

But get this. Adobe's data shows that online toy sales on Black Friday were up 622% compared to a typical day in October.

Speaker 2: 3:57

Wow 622%.

Speaker 1: 3:59

That's insane.

Speaker 2: 4:00

What were the big sellers?

Speaker 1: 4:01

Well, harry Potter Lido sets were a big hit, same with all the stuff from the Wicked movie and, of course, all the classic games and toys, disney princesses, all that. Apparently, this cookies-makery oven playset was super popular too.

Speaker 2: 4:11

So I guess kids still love their toys, even in the digital age. But what about in-store shopping? Were the malls totally empty?

Speaker 1: 4:18

Not totally, but there was definitely a drop in foot traffic. Mall of America had something like 13,000 shoppers in the first hour, which is pretty impressive, but Retail Next reported that overall store traffic was down 3.2% on Black Friday Interesting and MasterCard's data kind of backs that up.

Speaker 2: 4:39

They said online sales were up 14.6%, but in-store sales only went up 0.7%. Yeah, it seems like more and more people are just choosing to shop online. It's just so much easier and more convenient for a lot of people.

Speaker 1: 4:45

And speaking of convenience, let's talk about all the crazy discounts we saw this year. It felt like everything is on sale.

Speaker 2: 4:51

Oh yeah, Especially the things that have been hit hard by inflation and all those big ticket items.

Speaker 1: 4:57

Right. Adobe found that discounts exceeded expectations in categories like toys, electronics, TVs, apparel, computers, sporting goods. Why do you think retailers were so aggressive with their pricing?

Speaker 2: 5:11

Well, one theory is that they're trying to get rid of inventory before those tariffs kick in.

Speaker 1: 5:14

That makes sense. Plus, I think people are just looking for deals more than ever.

Speaker 2: 5:17

Yeah, joe Shastien from Retail Next called it inflation fatigue People just want to get the most bang for their buck Totally.

Speaker 1: 5:24

And here's another thing that caught my eye Online sales on Thanksgiving Day hit $6.1 billion. That's up 8.8% from last year. It's starting to feel like Black Friday isn't just one day anymore. It's more like a whole week of deals and promotions.

Speaker 2: 5:40

Yeah, the lines are definitely getting blurred.

Speaker 1: 5:42

And Nora Klein-Willinghofer from Kearney. She said it perfectly. She said that the frenzied in-person rush of Black Friday is becoming more of a digital first experience.

Speaker 2: 5:54

That's a great way to put it. So is Black Friday losing its appeal, or is it just changing into something different?

Speaker 1: 6:00

I don't know, but it's definitely fascinating to watch it all unfold. Yeah, yeah, it really makes you think about how retailers are adapting to all of this. I mean, it can't be easy for them to keep up with all these changes oh, absolutely.

Speaker 2: 6:12

There's definitely a lot of pressure on them to keep evolving. I mean they can't just rely on that one crazy day of in-store sales anymore. It's all about being online, having really competitive deals and reaching shoppers wherever they are. Social media apps, email, you name it.

Speaker 1: 6:27

So it's kind of like a constant juggling act for them.

Speaker 2: 6:29

Pretty much, and technology is a huge part of it. They need to be using, you know, sophisticated e-commerce platforms, ai poweredpowered chatbots, personalized recommendations. It's a lot to keep up with.

Speaker 1: 6:41

It sounds exhausting, honestly, but I guess what I'm wondering is is this whole evolution of Black Friday actually a good thing for shoppers?

Speaker 2: 6:49

Well, I think it definitely has its advantages. For one thing, you've got way more choices now and it's so much more convenient. Plus, you can often find better deals online because there's more competition and you don't have to deal with the crowds and the lines. You can just shop from home in your PJs.

Speaker 1: 7:04

I'm all for shopping in my PJs. But you know there's a part of me that kind of misses the old Black Friday, Like that whole thrill of getting up early and finding those doorbuster deals. It was an experience.

Speaker 2: 7:16

I get that there's definitely a certain nostalgia for the traditional Black Friday, but I think some of that excitement still exists online. It's just different. Well, think about it. There's still that anticipation of waiting for a flash sale to start, or the rush of snagging a limited edition item before it sells out. It's still a game, just with different rules.

Speaker 1: 7:35

Yeah, I see what you mean, but it feels like you need to be a much savvier shopper these days.

Speaker 2: 7:40

Definitely You've got to do your research, compare prices and be really careful about scams and misleading deals. It's easy to get caught up in the frenzy and make impulse purchases.

Speaker 1: 7:52

Especially with all those targeted ads. They're so good at knowing what you want.

Speaker 2: 7:56

Oh yeah, the algorithms are pretty sophisticated these days.

Speaker 1: 7:59

It's kind of creepy sometimes.

Speaker 2: 8:00

But it's all part of the game, as long as you're aware of it and you're making conscious decisions.

Speaker 1: 8:05

Speaking of conscious decisions, what about the environmental impact of all this online shopping? It seems like there are more packages being shipped, more returns being processed.

Speaker 2: 8:15

That's a really important point. There's definitely a concern about sustainability with all this online shopping, all those delivery trucks on the road, the packaging waste. It's something we need to think about.

Speaker 1: 8:24

It feels like a bit of a dilemma. We love the convenience of online shopping, but we also care about the planet.

Speaker 2: 8:31

I agree. It's a challenge for sure, but I think both retailers and consumers have a role to play in making things more sustainable.

Speaker 1: 8:38

So what can retailers do?

Speaker 2: 8:40

Well, they can start by using more eco-friendly packaging, like recycled materials or just less packaging. Overall, they can also optimize their shipping routes to be more fuel efficient and, maybe most importantly, they can encourage people to buy less but buy better.

Speaker 1: 8:55

That makes sense. But what about us as shoppers? What can we do to be more sustainable? People to buy less but buy better. That makes sense. But what about us as shoppers? What can we do to be more sustainable?

Speaker 2: 9:00

I think the key is to really think before you buy. Ask yourself if you really need something or if there's a more sustainable option.

Speaker 1: 9:08

So it's about being more mindful.

Speaker 2: 9:10

Exactly and supporting brands that are committed to sustainability.

Speaker 1: 9:13

Right, because our choices do matter.

Speaker 2: 9:15

Absolutely, and I think there's growing awareness about these issues, more and more people.

Speaker 1: 9:21

That's good to hear Shows that we can make a difference. So we've talked about the pressures on retailers, the changing consumer experience and the sustainability implications of all this. What do you think is the biggest takeaway from all of this?

Speaker 2: 9:35

I think the main thing is that Black Friday is constantly changing. It's not just a single day anymore, it's this whole dynamic, multifaceted event that's being shaped by so many factors Technology, economics, consumer behavior and it's all happening so fast.

Speaker 1: 9:50

It's pretty amazing to watch, but it also makes me wonder what's next? What's the future of Black Friday?

Speaker 2: 9:57

Yeah, I mean it's crazy to think how much it's already changed, but it feels like we're just getting started. What do you think Black Friday will look like in like five or 10 years?

Speaker 1: 10:05

If we just look at what's happening now, I think technology is going to be even more important. E-commerce, AI, mobile shopping, all that stuff is just going to keep growing.

Speaker 2: 10:14

So are we talking about a future where Black Friday is basically all online? No more lines, no more crowds, just everyone shopping from home? It could definitely go that way. Imagine Black Friday in virtual reality. You could try on clothes, see how a new sofa would look in your living room, all without leaving your house.

Speaker 1: 10:33

I mean that sounds super convenient, but wouldn't that kind of take the fun out of it? You know, like part of the Black Friday experience is that energy you get from being around other people. Everyone's excited, they're looking for deals.

Speaker 2: 10:44

Yeah, I get that. I don't think stores are going to disappear completely, but I think their role might change. Maybe they'll become more about the experience, showcasing products, offering personalized service, creating a sense of community.

Speaker 1: 10:57

So more about the experience than just buying stuff.

Speaker 2: 10:59

Exactly. Think like interactive displays, personal shoppers, maybe even in-store events.

Speaker 1: 11:05

Yeah, I can see that, and I bet personalization is going to be huge too.

Speaker 2: 11:09

Oh, definitely. As retailers learn more about our shopping habits, they can give us even more personalized deals and recommendations.

Speaker 1: 11:16

So you could open your email on Black Friday Monday and have a whole list of deals just for you.

Speaker 2: 11:21

Yeah, based on what you've bought before, what you've looked at online, even your social media activity.

Speaker 1: 11:27

Wow, that's amazing and kind of scary. But speaking of social media, do you think we'll start seeing Black Friday deals popping up on our feeds?

Speaker 2: 11:36

I think it's definitely possible. You could be scrolling through Instagram and boom, there's a flash sale for something you've been wanting.

Speaker 1: 11:41

That's dangerous, so let's talk about sustainability. With online shopping growing so much, how do we make Black Friday more eco-friendly?

Speaker 2: 11:51

I think sustainability is only going to become more important, both for consumers and retailers. We might see a lot more eco-friendly packaging, carbon neutral shipping and maybe even a bigger emphasis on buying less stuff but higher quality stuff.

Speaker 1: 12:05

So Black Friday could become less about just getting a good deal and more about making responsible choices.

Speaker 2: 12:11

Exactly, and we might even see some totally new models emerge, like circular economy initiatives where products are designed to be reused, or maybe even a resurgence of Buy Nothing Day, where people choose not to shop at all.

Speaker 1: 12:23

So maybe the future of Black Friday isn't just about how we shop, but also about why we shop and what's important to us.

Speaker 2: 12:30

I think that's a really good way to put it. Black Friday is kind of a mirror of our society. It reflects our values, our priorities.

Speaker 1: 12:36

That's deep. So what does all this mean for us as shoppers? What should we be keeping in mind as Black Friday keeps changing?

Speaker 2: 12:42

I think the most important thing is to be aware, Do your research, compare prices and think about the impact of your purchases.

Speaker 1: 12:49

Great advice and maybe, just maybe, we can all help shape the future of Black Friday, make it a more sustainable and meaningful experience. Well, that's about all the time we have for today. Thanks for joining us for this deep dive into Black Friday 2024.

Speaker 2: 13:04

It's been a really interesting conversation.

Speaker 1: 13:07

We've covered a lot of ground, from the latest trends and data to the future of retail and, most importantly, we've talked about how we can all be more conscious consumers. As we head into the holiday season and beyond, let's all try to make choices that reflect our values and create a better world for everyone.

Speaker 2: 13:24

Thanks again for listening and happy shopping.