How Did Food and Mass Retailers Fare on Black Friday?

Consumers are pulling back from luxury and beauty and spending on merchandise, new Black Friday data from Signifyd shows.

While grocers traditionally benefit from the big pre-Thanksgiving meal shop, food and mass retailers are also impacted by Black Friday trends in the broader marketplace. This year, it appears that consumers’ tightrope walk between fiscal wariness and resilience continues to affect their spending behaviors.

According to early data from analytics provider RetailNext, overall in-store foot traffic dipped 3.2% from last year’s Black Friday to this year’s post-Thanksgiving sales events. The researchers concluded that high grocery prices and other living costs are putting pressure on shoppers and affecting their discretionary spending. For example, sales of health and beauty and home products were down 5.8% and 4.9% year over year (YoY), respectively, from the Friday-Saturday timeframe, RetailNext's information indicates.

That said, even before Cyber Monday on Dec. 2, digital sales were brisk in the general retail space. Fresh data from commerce protection company Signifyd reveals that online shoppers spent nearly four times as much on Black Friday as on a typical day this year, boosting e-commerce sales 5% over 2023. General merchandise e-commerce sales rose 17% compared to last year’s Black Friday, while grocery sales climbed 11%. In contrast, sales of electronics declined 6% and beauty and cosmetic sales dropped 17% YoY.

Retailers seeking to maximize Black Friday performances have continued to widen the discount timeframe, a move that has somewhat muted sales on the actual day after Thanksgiving. “This extended shopping period has ultimately decreased the singular importance of Black Friday itself,” observed Joe Shasteen, global head of advanced analytics at RetailNext. “Categories like apparel, footwear, and jewelry saw notable traffic increases on the Saturday following Black Friday, indicating that consumers are spreading out their purchases. These trends show a shift in shopping behavior, with extended promotions allowing for more flexibility and reducing reliance on Black Friday as the primary shopping day.”

Meanwhile, consumers’ outlay on everyday essentials like groceries remained stable in the run-up to Thanksgiving and in the following days. According to the latest Mastercard SpendingPulse data, spending increased in November, “as consumers feasted at home in the two weeks leading up to Black Friday.”

The latest figures from the Fiserv Small Business Index for retail support that trend, including among smaller grocery businesses. Fiserv reported that grocery was the fastest-growing retail category, up 11.1% YoY, followed by general merchandise with 11% growth and clothing, shoes and jewelry coming in 7.3% higher.

“Holiday sales are critical for small businesses, with restaurants and retailers in particular benefitting from consumers getting out and patronizing local establishments during the final months of the year,” said Prasanna Dhore, chief data officer at Fiserv. “Notably in November, food sales accelerated across both restaurant and grocery while retail maintained the positive momentum from October, a significant increase when compared to 2023.”