Black Friday 2023 saw a shift in U.S. shopping habits, with in-store spending growing modestly by 0.7% year-over-year, according to Mastercard's preliminary data, and even declining slightly in other estimates. In contrast, online shopping saw a significant 14.6% increase in sales, reflecting a preference for e-commerce as Americans increasingly shopped from their phones and laptops.

The surge in online spending contrasts with muted brick-and-mortar sales, with data from Facteus showing a 5.4% decline in in-store purchases, while online sales rose by 11.1%. When adjusted for inflation, online sales growth slowed to 8.5%, while in-store spending dropped by 8%.

Despite these numbers, overall retail spending on Black Friday increased by 3.4% compared to last year, as shoppers turned to online platforms to find deals. Major e-commerce platforms like Amazon and Walmart, along with emerging players like Shein and TikTok Shop, benefited from this shift.

Retailers such as Macy’s, Target, and Best Buy experienced flat sales, highlighting the challenges traditional stores face as e-commerce continues to dominate, especially with a shorter holiday season this year. On the other hand, online sales, particularly for home appliances, furniture, and tech gadgets, showed significant growth, with Adobe tracking $10.8 billion in online spending and Salesforce reporting $17.5 billion in sales on Friday alone.

As the season continues, U.S. retail sales are projected to grow by 3.2% year-over-year through December 24, with a marked preference for online shopping continuing to reshape the retail landscape.