Blame it on the weather, the elections or God forbid Jeff Bezos and Amazon.com — but retails sales at traditional brick and mortar stores are looking like a complete and total bust for the much anticipated Black Friday. Sales were expected to stabilize this year, with projections ranging from flat to negative 3.5% year over year. However, according to RetailNext, sales plunged by more than 10% on Black Friday. Additionally, the number of transactions were down nearly 8%, year over year.
Sales and traffic at U.S. brick-and-mortar stores on Thanksgiving Day and Black Friday declined from last year, as stores offered discounts well beyond the weekend and more customers shopped online.
Internet sales rose in the double digits on both days, surpassing $3 billion for the first time on Black Friday, according to data released on Saturday.
Data from analytics firm RetailNext showed net sales at brick-and-mortar stores fell 5.0 percent over the two days, while the number of transactions fell 7.9 percent.
Preliminary data from retail research firm ShopperTrak showed that shopper visits to such stores fell a combined 1 percent during Thanksgiving and Black Friday when compared with the same days in 2015.
The data highlights the waning importance of Black Friday, which until a few years ago kicked off the holiday shopping season, as more retailers start discounting earlier in the month and opened their doors on Thanksgiving Day.
“We knew it (holiday season) was going to be off to a slow start,” Shelley Kohan, vice president of retail consulting at RetailNext, said.
“The first couple of weeks with the election were a complete distracter from the normal course of business and…a warmer climate in November may have made the sales more stubborn,” she said, adding that she saw sales picking up in December.
Net sales on Black Friday slid 10.4 percent for brick-and-mortar chains, according to RetailNext.
“Stores that opened on Thursday were not very busy on Black Friday,… and while the Thanksgiving Day opt-outs were busier on Black Friday, they didn’t see the crowds they saw in previous years,” NPD group’s Chief Industry analyst Marshal Cohen said.
Conversely, online sales dominated by Amazon.com, spiked doubled digits to more than $3b on Black Friday, a new record. While interesting and also a strong sign of consumer demand, none of this bodes well for the litany of stores domiciled in the endless sea of shopping malls across America.
The Amazonian vortex continues to draw everything into its vortex.
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I went to a Best Buy on Wednesday afternoon and they were stocked to the gills in anticipation. Never saw it like that in the past. I went Friday looking for a Nintendo classic but Nintendo fucked up forecasting demand for that so there’s none to be found anywhere except for scalpers on eBay.