US online sales surge on Black Friday amid Covid-19 crisis

NEW YORK • Online sales in the United States surged on the traditional Black Friday to set the country's second-highest one-day mark ever as virus-wary Americans shunned in-person shopping.

American consumers, staying home amid the coronavirus pandemic, spent US$9 billion (S$12 billion) online last Friday, a 21.6 per cent increase from the same day last year, the Adobe software firm reported on Saturday.

It said Friday's sales were surpassed only by those of last year's Cyber Monday - the Monday after Black Friday - when the focus is on online sales. Notably, some 40 per cent of sales were conducted over smartphones, and many consumers supported small businesses. Their sales jumped by 545 per cent last Friday compared with the average day in October.

"We anticipate this weekend being one of the biggest e-commerce events in history, as consumers vote with their wallets and support the independent and direct-to-consumer businesses they love," said Mr Harley Finkelstein, president of Canadian multinational e-commerce firm Shopify.

Today, with the usual surge of Cyber Monday spending amplified by the Covid-19 effect, analysts are predicting an all-time record. Sales are expected to total US$10.8 billion to US$12.7 billion, up by 15 per cent to 35 per cent.

With more people working from home, demand has surged for bigger-ticket items such as computers and home fitness machines.

The National Retail Federation - pointing to optimism over Covid-19 vaccines, a strong stock market and disposable income that normally would have gone to travel or entertainment - projects a jump of between 3.6 per cent and 5.2 per cent in overall holiday sales this year from last year.

Meanwhile, consumer visits to physical stores in the US declined by 52 per cent on Black Friday compared with a year ago due to social distancing requirements, according to preliminary data from Sensormatic Solutions.

Globally, online revenue reached US$62.2 billion, up 30 per cent from a year ago, said US cloud-based software firm Salesforce.

Top categories globally were apparel and accessories, health and beauty, and home and garden, Shopify said.

In Europe, many retailers have offered promotions throughout the month to spread out the demand.

In France, Black Friday has taken on a political tone, with small shops complaining that government-mandated store closures are gifting market share to Amazon.com. The fallout resulted in Amazon and some of France's biggest retailers agreeing to delay Black Friday until all stores reopen next month.

AGENCE FRANCE-PRESSE, BLOOMBERG