Signifyd: Online prices on Black Friday were not lowest of the year
Consumers looking for online deals on Black Friday had little to celebrate as the majority of items were priced higher than they had been previously this year.
That’s according to Signifyd’s ECommerce Holiday Season Pulse data for Black Friday in North America, which found that only 31% of products sold were selling at their lowest price of the year on Black Friday. The results suggest that retailers might be reaching their limit on the Black Friday deals they can offer to draw in shoppers, the report noted.
In addition, retailers were only slightly more generous with discounts than a year ago. The average discount was up two percentage points from a year ago, reaching 29.3%. At the same time, shoppers increased their reliance on discounts, applying them to 40% of orders, up from 38% in 2023.
In other findings, consumers continued their cautious ways, trading down by spending less for more items. The trend was best illustrated in the luxury goods category. Sales in the category were up 14%, but the average price per item sold dropped 13% compared to last year.
Black Friday this year was powered by especially strong showings in general merchandise sales, also known as department store sales, as well as luxury goods, according to Signifyd data. General merchandise sales were up 17% year-over-year and luxury sales increased 14%.
Other winners this Black Friday included the leisure and outdoor category and home goods. Electronics and the beauty and cosmetics categories had a disappointing day, falling below last year’s sales by 6% and 17% respectively.
Consumers stayed true to form during the extended holiday weekend (“Cyber Five”), noted Signifyd senior data analyst Phelim Killough.
“Overall online sales are up, but shoppers continue to focus on value and hunt for deals and discounts,” Killough said. “Retailers on the other hand are showing signs they are nearing the limit of the value they can offer. Good deals are out there, but Signifyd’s data shows that only a third or so of items sold on Black Friday sold at their lowest price of the year.”
Signifyd’s Ecommerce Holiday Season Pulse Tracker data is derived from transactions on Signifyd’s commerce network of thousands of e-commerce retailers and brands.
