2019 Black Friday Recap
On the latest episode of the E-Commerce Retail Briefing podcast:
Though some doubted these two retailers would survive in the age of Amazon a few years ago, they went into Black Friday Weekend as two standouts in retail.
Peloton faired well this Black Friday. The company gained almost 10%, hitting a record of $35 a share after KeyBlanc said the fitness company saw strong traffic on Black Friday. The startup’s initial public offering fell flat two months ago, but the stock is now up about 21% from its IPO price of $29.
According to Salesforce, consumers did more mobile shopping this Black Friday than ever before. With social media shopping capabilities and retail apps, digital sales grew 17% to $4.1 billion this year. Mobile orders increased 35% on Black Friday this year, with 65% of all e-commerce flowing through a mobile device. Adobe Analytics called Black Friday, “the biggest day ever for mobile," tracking almost $3 billion in sales from smartphones alone.
Cyber Monday shoppers are on track to spend a record $9.4 billion this year. Consumers had already dropped $473 million early that morning, on track for an almost 19% increase over last year. According to Adobe, big e-commerce players like Amazon will benefit the most from the surge in sales. Black Friday also hit a record $7.4 billion in U.S. online sales, the second-biggest U.S. online sales day ever, behind 2018 Cyber Monday’s $7.9 billion.
Target and Best Buy Come Out On Top
In the age of Amazon, many thought retailers like Best Buy and Target would wither away. Instead, they’ve proved critics wrong and became two standouts in retail as they headed into the Black Friday weekend. Both companies set themselves apart from competitors and emphasized their stores as the center of their strategies. According to an analyst from R5 Capital who has followed the companies closely, “People thought Best Buy was going to die...With Target, there were so many doubters about if it would survive in the Amazon world. People thought it would wither away."
Target’s shares, which have nearly doubled in price in the past year, hit an all-time high last week after the retailer reported impressive sales and profits this past quarter. Best Buy has reported strong sales for the past two years and continues to grow as the only remaining player left in consumer electronics. In the past few years, both companies have spruced up their stores, overhauled supply chains, upgraded their websites, and implemented fast shipping. They’ve also leaned into what sets them apart from their competitors. For Best Buy, offering expert advice, and for Target, its affordable clothing, home goods, and private-label brands.