Retailers are celebrating a strong Black Friday weekend, with shoppers spending significantly on gifts and decorations following their Thanksgiving feasts. However, this initial success does not guarantee that retailers will have an exceptional holiday quarter. Online spending saw an almost 8% year-over-year increase to $38 billion during the five-day period from Thanksgiving Day to Cyber Monday, as reported by Adobe Analytics. The National Retail Federation’s survey revealed a record-high 200.4 million shoppers visiting retailers’ stores and websites during the same period. Companies like Ulta Beauty and Foot Locker experienced rising shares and better-than-expected earnings due to a strong start to holiday spending on items like sneakers and makeup. Nonetheless, some unique factors may have contributed to these early sales, such as increased online shopping adoption, deeper discounts, and cooler temperatures in many parts of the U.S. This raises questions about whether consumer spending will remain robust throughout the crucial retail season or experience a more pronounced lull between Black Friday and the final Christmas rush. Ulta, a major player in the retail beauty category, is prepared for higher promotional levels compared to the previous year as they cater to budget-conscious customers. The National Retail Federation (NRF) has also tempered expectations, predicting 3% to 4% year-over-year growth in holiday-related spending from November 1 to December 31, aligning with pre-pandemic growth rates. Despite exceeding turnout expectations during the five-day Thanksgiving weekend, NRF CEO Matt Shay believes the season remains on track to meet this estimate.
