Black Friday Sales Rise, Signaling US Consumers’ Resilience

Sales on Black Friday rose from a year earlier, according to a key data provider — a sign that US consumers are continuing to spend despite persistent economic concerns.  

Retail sales, excluding autos, increased 4.1% on the day after Thanksgiving, according to data from Mastercard SpendingPulse. That surpasses last year's 3.4% growth. The figures, which are not adjusted for inflation, draw from both online and in-person purchases to give a broad view of economic activity. 

The data shows US shoppers' resilience amid higher costs and job-market concerns. To appeal to price-sensitive consumers, retailers are offering discounts on a wide range of goods — although the promotions may not be quite as deep as in past years. Companies are also highlighting newer, exclusive items for the season, ranging from $10 couch throws to $5 Barbie dolls.  

The holiday season is a key barometer for consumer demand, with executives, economists and investors closely watching households' spending habits. While shoppers tend to splurge at the end of the year on gifts, trends have started to shift and higher costs across the economy have fueled concern that consumers will buy fewer items. 

In-store sales rose 1.7%, above last year's pace. Online sales rose 10.4%, lower than last year's gain. 

“It clearly shows that the consumer has the ability to spend,” Michelle Meyer, chief economist at the Mastercard Economics Institute, said in an interview. 

Despite macroeconomic swings, shoppers appear to have purchasing power and were spending at a consistent level heading into Black Friday. Still, the outlook for the rest of the shopping period remains in flux — including how much of the sales growth is driven by inflation versus units and to what extent people open up their wallets through the end of the year, she said.  

On Black Friday, retailers catering to teens and 20-somethings were standouts that drew heavy traffic. Stores offering large discounts also attracted big crowds. Walmart Inc. said Vizio TVs, Oura rings and seasonal toys were popular items and shoppers were looking to maximize deals. Holiday decor and tools sold well at Home Depot Inc.

Still, many shoppers said deals seemed more muted compared with last year, at least initially. Retailers are offering gifts to appeal to cautious consumers. Target Corp. said, on average, 150 shoppers waited at opening time for free giveaways. 

While preliminary data on retail performance will be released in the coming weeks, definitive information on companies' performance won't be available until early 2026.