The holiday season continues to be on track, with another round of rosy updates from researchers and retailers on Monday.
Simon Property Group, the nation’s largest operator of retail and mixed-use centers, reported a 6.4 percent gain in shopper traffic for the three-day Black Friday to Sunday stretch.
Placer.ai, a consumer behavior and foot traffic analytics firm, said U.S. downtowns saw Black Friday pedestrian traffic rise by 2.6 percent from a year earlier. Placer.ai also reported that shopping malls saw foot traffic rise 8 percent on Black Friday, suggesting price promotions succeeded in attracting consumers. Small Business Saturday also saw a strong year-over-year performance, with downtown traffic rising by 4.8 percent and shopping mall traffic by 9.2 percent, Placer.ai reported.
At Amazon, “We had our biggest Black Friday ever, both based on sales as well as the number of customers who shopped,” said Jenny Freshwater, vice president of fashion and fitness, who spoke to WWD on Cyber Monday from the e-commerce giant’s fulfillment center in Robbinsville, N.J. “The theme of the year has been the viral favorites have been selling, so the social media products, the creator products, have really been flying off the shelves.”
Freshwater said brands like Naadam and the new-to-Amazon Kate Spade have also performed well. And Amazon Merch on Demand, where shoppers can upload their own artwork to be printed on goods, was up more than 20 percent on Black Friday.
“Tens of millions of customers worldwide” shopped Amazon on Black Friday with fashion, beauty, home and kitchen and toys among the bestselling categories, the company said.
Amazon had its “biggest” Black Friday ever, the company said.
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Adobe expects consumers will spend a record $13.2 billion online during Cyber Monday, up 6.1 percent year-over-year, and $750 million more than last year. Between the hours of 8 p.m. and 10 p.m. Monday, online spending was expected to peak with $15.7 million spent every minute. The software giant also reported that this past weekend (Nov. 30 and Dec. 1), consumers spent $10.9 billion online, up 5.8 percent year-over-year.
“Discounts remained elevated across categories including computers, electronics, apparel, toys, appliances, and televisions,” Adobe said in a statement.
On Wall Street, investors were feeling bullish about retail and fashion and seemed to be spurred on by the start of the holiday season.
Among the stock market gainers on Monday were Victoria’s Secret & Co., up 8 percent to $41.89; Gap Inc., 6.5 percent to $25.81; G-III Apparel Group, 5.9 percent to $31.38; The Estée Lauder Cos., 5.3 percent to $75.98, and Abercrombie & Fitch Co., 5.1 percent to $157.28. Amazon.com Inc. showed smaller gains, rising 1.4 percent to $210.71.
“On Black Friday and throughout the weekend, we saw even more evidence of what we already knew: Malls are thriving,” said David Simon, chairman, chief executive officer and president of Simon, in a statement. “Popular brands throughout our portfolio reported double-digit sales increases over the weekend compared to last year. Coast to coast, we saw lines prior to opening and throughout the day at many of our centers across the country.”
Ethan Chernofsky, senior vice president of marketing at Placer.ai, said: “Black Friday is not just about purchasing products. It’s about getting out, and there are many players that benefit, including movie theaters and coffee shops who see some of their strongest visitation trends of the entire year on the day. So, while Black Friday has changed, it’s still absolutely critical for retailers even if the ways they need to take advantage have shifted.”
Industrial-strength promoting, the strong stock market, reduced uncertainty after the presidential election and more-seasonal conducive weather conditions have motivated Americans to shop. Temperature drops have spurred sales of outerwear and winter accessories, which lagged through the fall. Activewear has also fared well. Monday’s reports followed similarly positive reports over the weekend from store executives, shopping center officials and software firms tracking retail sales.
In a breakdown of its shopper traffic tallies, Simon reported that year-over-year traffic at its retail and mixed-use destinations rose steadily over the long weekend, increasing 5.9 percent on Black Friday, 6.3 percent on Saturday and 8.2 percent on Sunday. Malls alone were up 7.1 percent over the three-day period. Simon, considered the nation’s largest operator of shopping centers, said that its data is verified by traffic counters deployed at its properties.
Retailers that saw significant Black Friday foot traffic increases from a year ago included Apple Stores, ahead 31.1 percent; HomeGoods, up 17.4 percent; Target, up 16.8 percent; Marshalls, up 11.1 percent; Ulta Beauty, up 5.7 percent, and Nordstrom, ahead 4.5 percent.
Similar to Simon’s report, Placer.ai said shopping malls “of all types” saw a surge in visits, with indoor malls seeing foot traffic increase 8.2 percent year-over-year, while outlet centers were up 5.2 percent, open-air shopping centers gained 6.9 percent and indoor malls were up 3.6 percent.
“Shoppers remain focused on value but also prioritize unique and differentiated products, as evidenced by strong year-over-year visitation trends at off-price retailers like HomeGoods, Marshalls, and T.J. Maxx,” said R.J. Hottovy, head of analytical research at Placer.ai, in a statement. “Additionally, categories that thrived during the pandemic, such as home furnishings and sporting goods, are making a comeback, signaling potential upgrades or replacements of earlier purchases. The role of malls continues to evolve, with many seeing stronger year-over-year visitation trends than their individual tenants. Successful strategies to position malls as destinations through entertainment, decor, and unique experiences have resonated with consumers, highlighting the importance of offering more than just shopping.”
Amazon’s Freshwater shied away from any forecasts. “We have learned not to predict until it’s over,” she said. “The timing of the holiday really matters. We started our deals early this year, and so every year there’s something new and different through our holiday, but we were really encouraged by the Black Friday numbers.”
“We have deals dropping all day [Cyber Monday] for those people who might get off work and want to shop late,” and also through the remaining holiday period for those more last-minute shoppers, she said. “So the theme of the day is just wide selection and good deals delivered quickly.”
Amazon has faced heat from some employees who are responsible for getting those deals to customers so quickly, with some strikes over the holiday weekend. “Those groups represent a variety of interests,” Freshwater said. “We use it as an opportunity to listen. We’re always looking for ways to improve and I mean, we remain really proud of our competitive pay, our benefits, our ability to grow careers, and we don’t expect the strikes to disrupt our business at all.”
Meanwhile, Kohl’s is tempting shoppers with free merchandise. On Dec. 7 and continuing Dec. 14 and Dec. 21, four customers at each of Kohl’s over 1,100 stores nationwide will have their cart paid for each day. That equates to more than 4,000 shoppers getting their purchases for free each Saturday, and more than 10,000 carts this holiday season, Kohl’s said.
Kohl’s, which has been seeing sales declines for several seasons, is also pumping up its holiday push by offering a new gift idea shared online at Kohls.com each day beginning Tuesday through Dec. 24, including beauty products, stocking stuffers, toys and apparel. Winners will be chosen at random, system-generated times that are unique to each Kohl’s store.
