Record-Breaking Holiday Shopping Kicks Off: Thanksgiving Weekend 2019 Sees Surge in Consumer Engagement and Spending

The annual Thanksgiving weekend shopping spree, stretching from Thanksgiving Day (Thursday, November 28, 2019) through Cyber Monday (Monday, December 2, 2019), proved to be a monumental success for U.S. retailers. According to the National Retail Federation (NRF) and Prosper Insights & Analytics, a record-breaking 189.6 million U.S. consumers actively participated in holiday shopping during this pivotal five-day period. This staggering figure represented a significant 14% increase over the 165.8 million shoppers recorded in the same period just one year prior, underscoring robust consumer confidence and an enthusiastic start to the holiday season.

This impressive surge in participation was mirrored by a substantial increase in consumer spending. Shoppers shelled out an average of US$361.90 on holiday-related items throughout the five-day retail marathon. This marked a considerable 16% growth from the average of US$313.29 spent during the 2018 Thanksgiving weekend, signaling consumers’ willingness to open their wallets for festive purchases. Of the total expenditure, a dominant 71%, or US$257.33, was specifically allocated to gifts, highlighting the primary driver behind much of the weekend’s retail activity.

Interestingly, the NRF survey revealed that certain demographics were particularly keen to spend. The 25- to 34-year-old age group led the charge, with an average expenditure of US$440.46, closely followed by consumers aged 35-44, who spent an average of US$439.72. These figures suggest that younger, digitally-native generations are increasingly influential in shaping holiday spending patterns, embracing both online and in-store opportunities to find the perfect gifts and deals.

The Pulse of the Season: NRF’s Executive Insights on Holiday Retail Trends

Matthew Shay, President and CEO of the NRF, commented on these remarkable findings, emphasizing the shifting dynamics of holiday shopping. “Americans continue to start their holiday shopping earlier in the year, and Thanksgiving is still a critical weekend for millions,” Shay stated. He underscored the diverse avenues consumers utilized, whether seeking unique finds on Main Street, making traditional store visits, or scouring for the best deals from their mobile devices. This period, he noted, is when shoppers truly “shift into high gear,” demonstrating heightened engagement across various retail touchpoints.

Shay also highlighted the impact of a condensed holiday season in 2019, which likely fueled a sense of urgency among shoppers. With fewer days between Thanksgiving and Christmas, consumers felt increased pressure to complete their gift lists promptly. This urgency propelled even those who typically procrastinate to participate in the early shopping frenzy, leading to record turnout numbers across the entire weekend. This insight provides valuable context for understanding the strong performance observed, suggesting that strategic planning by both consumers and retailers played a significant role in capitalizing on the compressed timeframe.

Embracing the Seamless Shopping World: Omnichannel Retail Dominates

The 2019 Thanksgiving weekend data further solidified the pervasive trend of omnichannel retail, demonstrating how consumers seamlessly navigate between physical and digital storefronts. The survey reported that 124 million people shopped in traditional brick-and-mortar stores, while an even larger contingent of 142.2 million opted for the convenience of retailers’ websites. Crucially, a substantial segment of 75.7 million consumers engaged in a truly integrated shopping experience, accessing both in-store and online channels.

This “seamless shopping world” is not just about convenience; it also translates to increased spending. The NRF observed that consumers who shopped across both channels spent an average of US$366.79. This figure is particularly noteworthy as it represents at least 25 percent more than what was spent by those who confined their shopping to only one channel, either online or in-store. This data powerfully illustrates the synergistic relationship between digital and physical retail, indicating that a unified, customer-centric strategy can significantly boost customer engagement and total transaction values by catering to diverse preferences.

Busiest Shopping Days: A Shifting Retail Calendar

Analyzing the activity across the five-day period reveals interesting shifts in consumer behavior. For in-store shopping, Black Friday maintained its traditional dominance, drawing an impressive 84.2 million shoppers into physical stores. This was followed by Small Business Saturday, which saw 59.9 million shoppers supporting local enterprises and independent retailers. Thanksgiving Day itself attracted 37.8 million shoppers, demonstrating the growing trend of early store openings and promotional activities. Sunday accounted for 29.2 million in-store visitors, while Cyber Monday, primarily an online event, still saw 21.8 million shoppers venture into physical locations, perhaps for last-minute pickups or returns.

However, the online landscape presented a historic shift. For the very first time, Black Friday surpassed Cyber Monday as the busiest day for online retail activity, with 93.2 million shoppers making purchases digitally. Cyber Monday, while still immensely popular, followed with 83.3 million online shoppers. Saturday registered 58.2 million online shoppers, Thanksgiving Day saw 49.7 million, and Sunday contributed 43.1 million to the digital sales tally. This milestone indicates a growing preference for immediate online deals following Thanksgiving, even before the traditional Cyber Monday rush, and underscores the increasing digital integration of the entire holiday weekend as a whole.

Key Motivators Driving Consumer Purchase Decisions

As the distinctions between online and in-store shopping continue to blur, understanding what truly sways consumers’ purchasing decisions becomes paramount for retailers aiming to optimize their sales strategies. The 2019 survey identified several critical factors, with free shipping emerging as the most powerful incentive. An impressive 49% of shoppers cited free shipping as the strongest reason to proceed with a purchase they might have otherwise hesitated about. This figure represents a notable increase from 42% in 2018, reinforcing the expectation and high value consumers place on waived shipping fees as a standard offering rather than a luxury.

Convenience also played a significant role, particularly the increasingly popular option to order online and pick up in-store (BOPIS). This service was cited as a major factor by 20% of shoppers, up from 15% in the previous year, highlighting its growing importance in facilitating seamless transactions and catering to time-sensitive consumers who value efficiency. Other key motivators included limited-time sales or promotions, which influenced 36% of shoppers by creating a sense of urgency, and the ease of using a retailer’s website or app, cited by 21% of respondents, emphasizing the crucial role of user experience in digital commerce. These elements collectively underscore the modern consumer’s demand for value, convenience, and a frictionless shopping experience.

Information Channels and Mobile Dominance in Holiday Shopping

In the digital age, how consumers discover deals and promotions is as critical as the deals themselves. The survey found that 39% of consumers relied on emails from retailers to stay informed about sales, effectively edging out traditional advertising circulars. Conventional circulars were tied with online searches at 38% as primary sources of information, indicating a clear shift towards digital communication channels for deal discovery and engagement. Retailers’ email marketing strategies are proving to be highly effective in directly reaching their target audience with compelling offers.

Furthermore, mobile devices played an undeniably significant and growing role throughout the Thanksgiving weekend. A remarkable 75% of consumers leveraged their smartphones or tablets to research products, compare prices, or make direct purchases. This figure represents a substantial increase from 66% in 2018, underscoring the indispensable nature of mobile technology in modern holiday shopping and the need for retailers to ensure mobile-optimized experiences. Phil Rist, Executive Vice President of Strategy at Prosper Insights & Analytics, encapsulated this trend, stating, “The growth in online retail sales is a tide that lifts everybody. When consumers are buying from retailers online but picking up or making returns in-store, it is more and more difficult to distinguish between the sales retailers make in their stores and the ones they make on their websites.” This observation perfectly illustrates the interconnectedness of all retail channels and the holistic approach consumers now take to their shopping journeys, blurring traditional boundaries.

Popular Gift Categories and the Road Ahead for the Holiday Season

Delving into specific product categories offers insights into what topped consumers’ gift lists during the Thanksgiving weekend, providing valuable data for retailers planning their inventory and marketing efforts. Apparel remained the most sought-after gift, purchased by a commanding 58% of those surveyed, indicating its timeless appeal. Following closely were toys, bought by 33% of shoppers, and electronics, which accounted for 31% of purchases, showcasing the continued demand for gadgets and entertainment. Books, music, movies, and video games were popular choices for 28% of consumers, while gift cards rounded out the top five, acquired by 27% of shoppers, highlighting their flexibility and appeal for uncertain gift-givers. These categories provide a robust snapshot of consumer preferences and serve as key indicators for retailers preparing for the remainder of the holiday season.

The survey also shed light on the progress of holiday shopping. On average, consumers reported having completed 52 percent of their shopping, a notable increase from 44 percent during the same weekend in 2018. This acceleration occurred despite Thanksgiving falling six days earlier in 2018, reinforcing the persistent trend of consumers starting their holiday preparations earlier. Interestingly, only 39% of shoppers believed that deals would improve throughout the rest of the season, suggesting that many were confident in the value offered during the Thanksgiving weekend and were less inclined to wait for potential further discounts, opting to secure their purchases early.

The NRF’s earlier findings further support this trend of early engagement, with 56% of consumers indicating they had already commenced their holiday shopping by the first week of November. This extended shopping period underscores a strategic shift among consumers, who are increasingly spreading their purchases over a longer timeframe rather than concentrating them in the immediate lead-up to Christmas, which provides a more manageable shopping experience and avoids last-minute stress.

A Positive Outlook: NRF’s Holiday Season Forecast

Looking ahead, the NRF, which defines the holiday season as the critical period from November 1 through December 31, issued a robust forecast for overall retail sales. The organization projected total sales for the season to fall between US$727.9 billion and US$730.7 billion, reflecting a strong economic environment and consumer confidence. Consumers, on average, were expected to spend US$1,047.83, a figure that includes purchases made earlier in the season, demonstrating a significant commitment to holiday spending. This represents a healthy 4% increase over the previous year, painting a confident picture for the retail sector as it approached the close of 2019. The strong performance over the Thanksgiving weekend served as a powerful indicator of this positive momentum, setting a promising tone for the remainder of the holiday shopping period and affirming the underlying strength and resilience of the U.S. consumer market.

News Source: gjepc