Black Friday 2024: Retail’s Red Pill Moment
A Turning Point for Digital-First Retail and the Rise of Social Commerce.
"Welcome to the real world." - Morpheus, The Matrix
Black Friday 2024 wasn’t just about sales—it was a referendum on the future of retail. The winners embraced eCommerce, mobile-first strategies, and social commerce, while the losers clung to outdated models. With record-breaking online sales, rising mobile transactions, and platforms like TikTok Shop driving consumer behavior, the landscape is shifting rapidly. Here’s what worked, what didn’t, and what retailers can learn.
The Winners
eCommerce Platforms: Digital Dominance - U.S. online sales reached $10.8 billion on Black Friday, a 10.2% year-over-year increase. Globally, online shopping hit $74.4 billion, showing the growing strength of digital-first strategies. Adobe Analytics highlighted a 10% jump in year-over-year online sales, driven by aggressive promotions and seamless shopping experiences.
Shopify merchants reached $5 billion in global Black Friday sales, up 12% year-over-year.
Amazon experienced a significant boost in sales during Black Friday 2024, with online spending reaching $10.8 billion—a 10.2% increase from the previous year.
Mobile Commerce: A Must-Have Channel - Mobile devices accounted for 55% of online sales, generating $5.9 billion, a 12.1% increase over last year. Shopify reported that 78% of its transactions were completed via mobile, underscoring the importance of mobile-first strategies. With mobile-friendly checkouts, Amazon also saw a surge in transactions completed through its app.
Social Commerce: TikTok and Instagram Win Big - TikTok Shop made a splash, offering discounts up to 70% and drawing significant engagement from Gen Z shoppers. Instagram’s shoppable Reels drove 40% higher engagement, with brands like Sephora leveraging influencers to increase sales by 15%. Live shopping events and viral TikTok campaigns reshaped how products were discovered and purchased.
Buy Now, Pay Later (BNPL): Payment Plans Win - BNPL services accounted for $700 million in Black Friday sales, a 47% increase over last year. Nearly 80% of BNPL transactions were completed via mobile, highlighting the feature’s importance in modern commerce. Klarna, a leading BNPL provider, reported a 30% rise in transactions compared to last year.
The Losers
Brick-and-Mortar Stores: Foot Traffic Declines - Physical retail saw in-store sales rise just 0.7%, while foot traffic fell 3.2% nationwide. Snowstorms in the Midwest contributed to a 7% drop in regional traffic. Even in favorable weather, consumer preference for convenience overshadowed traditional in-store promotions.
Department Stores: A Declining Legacy - Department stores struggled despite heavy discounts, with flat or declining sales reported by major chains. Macy’s and Kohl’s cited challenges in luring shoppers away from online deals. The segment’s ongoing struggle underscores the difficulty of competing with digital-first players.
The Dilution of Black Friday - Retailers’ strategy of spreading discounts across November backfired, diluting Black Friday’s traditional impact. Shoppers were less motivated to wait for a single day of deals, leading to a more muted in-store rush. Online, however, retailers reported steadier sales throughout the month.
What Worked
Mobile Optimization - Fast, intuitive mobile experiences paid off big for retailers. Shopify’s mobile-first approach proved critical, with merchants capturing nearly 80% of their Black Friday transactions via mobile. Amazon’s app saw a record number of users complete purchases during flash deals. Even smaller retailers benefited by focusing on mobile-friendly navigation and checkout processes.
Influencers Drive Sales - Nearly 49% of shoppers relied on influencer recommendations, with micro-influencers achieving conversion rates 60% higher than traditional ads. TikTok creators drove significant engagement, with some individual campaigns exceeding $1 million in sales. Instagram influencers also contributed, with beauty and fashion brands seeing double-digit growth tied to sponsored content.
Flexible Payment Options - Offering BNPL wasn’t just helpful—it was essential. Retailers who partnered with Klarna or Affirm saw bigger carts and higher conversion rates, particularly from millennial and Gen Z shoppers. Flexible payment options also encouraged more impulse buys, especially during flash sales.
Lessons for Retailers
Mobile is Non-Negotiable: A mobile-first approach is critical to capture today’s shopper. Optimization for speed and usability isn’t optional anymore—it’s the baseline for success.
Social Commerce is the New Frontier: Platforms like TikTok and Instagram are no longer experimental—they’re integral. Ignoring social commerce means missing out on younger audiences and viral engagement.
Offer Flexibility Everywhere: Payment plans like BNPL and hassle-free returns build trust and encourage larger purchases.
Reinforce Black Friday’s Unique Value: Retailers must balance month-long promotions with exclusivity on Black Friday itself to sustain urgency and consumer excitement.
Looking Ahead
Black Friday 2024 underscored the relentless shift toward digital-first. eCommerce is no longer an alternative—it’s the expectation. Mobile-first and social commerce approaches are table stakes for survival, while the influence of platforms like TikTok continues to reshape the customer journey.