AI-Powered Chatbots Drive Record-Breaking $10.8 Billion in Black Friday Online Sales

Online sales surge to record-setting $10.8B on Black Friday as stores...

Americans let their fingers do the shopping on Black Friday, as online spending soared to a record-setting $10.8 billion. That haul included a breathtaking $11.3 million spent every minute between 10 a.m. and 2 p.m. on the day after Thanksgiving, with most shoppers using their phones, not PCs, to hunt down holiday bargains, according to data provided by Adobe Analytics. Many of the spend-happy let artificial intelligence help them with their gift list. Generative AI-powered chat bots had a huge influence on shoppers, Adobe said, with traffic to retail sites from chat bots soaring 1,800% compared to Black Friday last year. "Crossing the $10 billion mark is a big e-commerce milestone for Black Friday, for a day that in the past was more anchored towards in-store shopping," Vivek Pandya, lead analyst for Adobe Digital Insights, said in a statement. "And with consumers getting more comfortable with everything from mobile shopping to chat bots, we have tailwinds that can prop up online growth for Black Friday moving forward." Harry Potter Lego sets, Disney Princess dolls and anything "Wicked" topped sales. Shoppers also snatched up makeup, Bluetooth products and smart watches. Discounts "exceeded expectations," Adobe said, but even as shoppers searched for reduced prices amid continued concerned about inflation, they also "embraced higher ticket items." Manhattan-based Reprise Activewear was one of the beneficiaries of the cybersplurge. Black Friday was the company's second-best day of the season so far, said founder Mary Bemis, 33. The site hawks plant-based and nontoxic clothing. The top sales day was what the company called "Green Friday," launched last week to make up for the shorter shopping season: just 26 days between Thanksgiving and Christmas, against a more leisurely 31 days last year. "I see people taking advantage of the deals, but I feel like they're still spending a high amount compared with what our average order is," said Bemis, 33. Soho-based Two Blind Brothers -- offers customers the chance to "buy blind," and make a clothing purchase that will surprise them to raise money for the Foundation Fighting Blindness -- saw traffic spike 13% in the past week as it offered a 20% discount on purchases, said co-founder Bradford Manning. While the digital space was packed with shoppers, brick-and-mortar stores failed to draw the huge crowds of days gone by. The exception was Target, which saw flashback overnight lines at some locations around the country for the launch of its exclusive book devoted to Taylor Swift's Eras Tour and a bonus edition of her "The Tortured Poets Department: The Anthology" album. Although both became available online Saturday, many locations sold out their supply, the discount retailer said. But it was a typical shopping day at most other stores, said Marshal Cohen, chief retail adviser at market research firm Circana, who spent the day scouting Long Island shopping centers. "The spreading out of the holidays has created the lack of need and lack of urgency," said Cohen, who had a 20-person team monitoring crowds nationwide. "This is going to be a long, slow tedious process" of getting shoppers to buy, he said. Michael Brown, a partner at management consulting firm Kearney, saw no lines at the Westfield Garden State Plaza in Paramus, NJ on Thursday. "It's not the old Black Friday that we used to know," he said.

US 'Black Friday' online spending put at record $10.8 bn

Washington (AFP) - American consumers spent a record $10.8 billion online during "Black Friday" promotions, with many using artificial intelligence tools to find the best deals, Adobe Analytics announced Saturday. Total sales were 10.2 percent higher than on Black Friday in 2023, it said. The biggest sales during the annual day-after-Thanksgiving promotions were for toys, jewelry, household appliances, skin- and hair-care products, clothes and electronic devices. Passing the $10 billion mark was an important step for electronic commerce, given that Black Friday shopping traditionally has been in brick-and-mortar stores, according to Adobe Digital Insights analyst Vivek Pandya. The high spending totals were the result not of price inflation but of rising demand, Adobe said, adding that electronic sales had seen prices decline for 26 straight months -- down 2.9 percent in October from the same month in 2023. AI appeared to play a significant role. Traffic on sites that use artificial intelligence to help guide consumers was up a huge 1,800 percent from last year's Black Friday, Adobe said. An Adobe survey found that consumers used AI not just to find the best deals but to quickly locate specific articles or to get product recommendations. Each year, Black Friday marks the opening of the year-end holiday sales season in the United States. As Black Friday promotions continue, online consumers are expected to spend an additional $5.2 billion on Saturday and $5.6 billion on Sunday, Adobe said. And record sales of $13.2 billion are predicted for Cyber Monday, up 6.1 percent from 2023. For the full five-day period from Thursday through Monday, consumers are expected to spend a total $40.6 billion online, up seven percent from last year, Adobe said.

Shoppers Spent $11.3M Per Minute Online on Black Friday - Target (NYSE:TGT)

AI chat bots significantly impact shopping trends, with an 1,800% increase in traffic to retail sites. Black Friday online sales reached an unprecedented $10.8 billion, surpassing in-store purchases as brick-and-mortar stores witnessed a significant decline in customers. What Happened: Shoppers in the U.S. opted for online shopping, spending an astounding $11.3 million every minute between 10 a.m. and 2 p.m. on Friday. According to a report by The New York Post, Adobe Analytics data indicates that AI-powered chat bots played a crucial role in influencing shoppers, with an 1,800% increase in traffic to retail sites from chat bots compared to the previous year. Vivek Pandya, the lead analyst at Adobe Digital Insights, told the outlet, "Crossing the $10 billion mark is a big e-commerce milestone for Black Friday, for a day that in the past was more anchored towards in-store shopping." He further added that consumers are becoming increasingly comfortable with mobile shopping and chat bots, painting a promising picture for future online Black Friday sales. "And with consumers getting more comfortable with everything from mobile shopping to chat bots, we have tailwinds that can prop up online growth for Black Friday moving forward," he added. Also Read: One Low-Tech Toy Blows Away Black Friday Shopping Competition Top-selling items included Harry Potter Lego sets, Disney Princess dolls, makeup, Bluetooth products, and smart watches. Despite inflation worries, shoppers also "embraced higher ticket items." According to Mastercard SpendingPulse, while U.S. e-commerce sales on Black Friday were up 14.6% from last year, in-store sales were up just 0.7% as brick-and-mortar stores saw an overall drop in customers. The exception was Target TGT, which experienced overnight queues for the launch of its exclusive Taylor Swift book and album. However, according to Marshal Cohen, chief retail adviser at market research firm Circana, most other stores had a typical shopping day. Why It Matters: The shift towards online shopping has been accelerated by the COVID-19 pandemic, with consumers preferring the convenience and safety of shopping from home. The significant role played by AI-powered chat bots in driving online sales underscores the growing influence of technology in the retail sector. Furthermore, the success of high-ticket items suggests that despite economic uncertainties, consumers are willing to spend on premium products. The exception of Target's in-store success indicates that exclusive product launches can still draw crowds, hinting at potential strategies for brick-and-mortar stores to compete in the digital age. Read Next Amazon's Focus Shift To Black Friday From Cyber Monday Is Paying Off, Says Gene Munster This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image: Shutterstock Market News and Data brought to you by Benzinga APIs