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Retail is Alive: Customers Show up for Black Friday and Cyber Monday

Wednesday, December 07, 2016

Black Friday ShoppingMillions of people camped out in front of retail stores on Black Friday and clicked away with abandon on Cyber Monday, all in the hopes of getting the best possible deal on electronics, toys and more. This year, total sales for both milestone shopping days of the year increased from last year, providing millions of reasons for retailers to celebrate. In fact, NRF/Prosper Insights and Analytics and Adobe both predict that November/December holiday sales will end up 3.6 percent higher year-over-year.

“Analysts suggest that the presidential election caused uncertainty leading up to the holiday season,” said HFF Managing Director Bryan Ley in HFF's Los Angeles office. “This led many people to wait until after Election Day and for the big sales discount season to make key purchases, which is demonstrated in sales growth at the end of November.”

Thanksgiving/Black Friday

On Thanksgiving and Black Friday, brick and mortar retail sales increased 1.3 percent from 2015. Additionally, online sales saw a 17.7 percent increase, bringing in $5.27 billion in sales. Almost 10 million more people shopped online versus visiting stores over the holiday weekend. Mobile sales accounted for 33 percent of total online sales, and brick and mortar retailers that invested in mobile, email and social media saw 30 percent more sales on average and 25 percent higher average order values than those retailers who did not. Electronics and appliances saw a 28 percent sales growth over last year, and, along with electronics, footwear and beauty products are king this season. Additionally, here are some important statistics:

  • Thanksgiving Online Sales: 11.5 percent increase YOY to total $1.93 billion
  • Black Friday Online sales saw a 21.6 percent increase YOY to total $3.34 billion
  • Biggest Winners: Best Buy, Target, Amazon, Kohl’s, JCPenney, Macy’s, GAP, Apple

Cyber Monday

Cyber Monday saw an increase of 12 percent in total online sales of $3.45 billion, which surpassed early predictions of $3.36 billion. In fact, Cyber Monday surpassed Black Friday online sales by $110 million. Mobile purchases accounted for 55 percent of purchases. For example, Wal-Mart reported that purchases on its app were up 150 percent from last year. Note that:

  • Mobile Device Purchases breakdown: 45 percent cell phone, 10 percent tablet
  • Biggest Winners: Best Buy, Wal-Mart, Amazon, Target
  • Most Popular Products: Electronics and toys

Good News for Retail and Industrial

Cyber Monday StatisticsFor this holiday season, more people are preferring to shop from their couch for basic goods rather than fight crowds at stores, but, for major purchases, customers are going to the brick and mortar stores. This is good news for both retail and industrial property types, as it demonstrates that retail is thriving and that customers are consuming both brick and mortar retailers and their online presence. At a time when consumers are wondering about the future of brick and mortar retail, the holidays stats further show the need for physical stores and how retailers have evolved to promote the strength of their brand and products both in-store and online.

About HFF's Retail Group

Holliday Fenoglio Fowler, L.P. (HFF) is one of the top producing capital markets intermediaries in the country for retail assets having closed more than $77 billion in over 4,000 transactions since 1998. We have 139 retail specialists who are experts in investment sales, providing construction, interim and permanent debt alternatives, structured finance options including joint ventures, participating debt and mezzanine financing structures, and ground-up development capitalization. Learn more about HFF's Retail Group here.

About HFF’s Industrial Group

HFF is one of the top-producing capital markets intermediaries in the country for industrial assets having closed more than $30 billion in over 1,700 transactions since 1998. We have 112 industrial specialists who are experts in providing construction, interim and permanent debt alternatives, as well as equity placement options including joint ventures, participating debt and mezzanine financing structures, ground-up development capitalization, and the traditional out-right sale alternatives. The firm has experience in securing transactions for all types of industrial assets including bulk warehouse, flex, R&D, manufacturing, cold storage, and telecommunications. For more information about HFF's Industrial Group, click here.






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