Economy

Online sales top $5 billion on Black Friday, report shows

Online sales top $5 billion on Black Friday, report shows

They had ended the regular session up 2.1 percent, boosted by comments from Chief Executive Jeff Gennette, who told CNBC that Macy's was better off this year than last, had robust online demand and was in a good place for holiday promotions. But this year, Cyber Monday sales are projected to set new records.

Earlier discounts this season: While 6 percent of the apparel retail products sold out the week before Black Friday a year ago, this figure rose to 7 percent the week prior Black Friday in 2017, an indication that bargains were available ahead of the holiday season. Online sales were particularly robust, with Adobe Digital Insights reporting that Americans spent about $5 billion on Internet-based shopping. The reason: it's a ideal storm of discounts that kicked off on Friday, combined with people heading back to work after the long weekend, and therefore no longer able to go to physical stores as easily throughout the day to pick up deals.

Separately, preliminary estimates by data analytics company ShopperTrak said foot traffic decreased less than 1 percent in physical stores when compared to Black Friday 2016.

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These increased by 11.9 percent on Monday, far beyond the season average of 5.7 percent. The practice, known as showrooming, has been hard to combat. ShopperTrak added that after Black Friday, Dec. 23 and Dec. 16 - both Saturdays - will be the second and third busiest shopping days of the season. Because they are portable, smartphones allow people to look at merchandise in stores and buy at better prices online, nearly instantaneously. "Millennials were likely another reason for the dramatic growth in mobile, with 75 percent expecting to shop via their smartphone". "Consumers are also becoming more savvy and efficient online shoppers". Toys" R " Us, which filed for bankruptcy earlier this year, offered 15 percent items site-wide and another 25 percent off all Hasbro games online.

On Black Friday, the largest discounts were on computers, televisions and toys, On Tuesday, which is now referred to as Giving Tuesday, pet products and bedding and furniture are expected to have the best discounts at 22% and 13% respectively. As a result, AMZN stock hit record highs on Cyber Monday, at one point surging over 7% from the previous Monday. That would make it the biggest online shopping day in history.

Just because the end is not here for brick-and-mortar stores does not mean traditional retailers have nothing to fear.