At the start of the biggest shopping frenzy of the year, US Black Friday sales trends are beginning to emerge. Our insights experts at Edge by Ascential take a look at the US ecommerce landscape across a range of categories, as well as the tactics of some of the region’s largest online retailers. We can report early findings in pricing and promotional activity for the US’s most sought-after seasonal buys.
“Black Friday”, “Cyber Monday”, or is it “Cyber Week”?
Online spending is predicted to increase 14.8 percent this year to $124.1 billion (Adobe Analytics[1] ). Although this is just 0.1 percent higher than the increase last year, consumer confidence has reached a near 18-year high (WSJ[2] ). It comes as no surprise that some US retailers are extending the seasonal discount period by bringing it forward, hoping to secure an early advantage from enthusiastic bargain-hunters.
Amazon and Target appear to be the most eager to capitalise on increased consumer confidence, promoting their Black Friday deals as soon as seven and five days (16 and 18 November respectively) before the day itself.
Retailer Rivalry in Home Automation
Walmart and Best Buy started their promotions comparatively much later on 21 and 22 November respectively, however they each appear to have taken up a different challenge with Amazon, partnering with Google and prominently promoting the Google Home Hub and Home Mini, as they did on Prime Day.
This strategy is most apparent in the promotional activity of its subsidiary Jet.com where the Google Home Hub features in its main Black Friday image and it is positioned, with the Home Mini, as one of its ‘Top Holiday Deals’. (Although, at the time of writing, the Coral variation of the Home Mini was out of stock.)
Jet.com - 22 November 2018
In a counter move, Amazon lists 80 deals on its own devices, significantly more than Prime Day 2018 or Black Friday last year.
Amazon website 8am (EST) - 23 November 2018
Many of the deals are on bundles that include an Amazon device such as the Echo Dot, and products that are Alexa-enabled such as the Sonos Beam.
The Amazon Echo Dot 2nd Generation was the first deal on the carousel at $19.99, its lowest ever price. It might imply that Amazon is trying to clear stock of this item to make way for the 3rd generation which is also on promotion at just $24.00, only $4.01 more.
Amazon is offering its lowest ever price on a range of its devices; the Echo Spot is $10 cheaper than on Prime Day, and the Echo 2nd Generation is priced at $69 which is $0.99 less than Prime Day.
However, not all Amazon devices are more attractively priced today. The Amazon Fire TV Stick is available for $24.99, an increase of $5 since Prime Day. The Fire TV Stick 4K is just $10 which might prove to be a more persuasive deal.
Amazon website 8am (EST) - 23 November 2018
What’s the Deal with Toys?
There has been some speculation before today that retailers will prominently promote Toys to exploit the gap left by Toys “R” Us. Walmart and Target both have large banners publicizing their Black Friday Toy deals. Furthermore, Walmart positions itself as “America’s Best Toy Shop”.
Walmart website 8am (EST) - 23 November 2018
Amazon’s focus on Toys is not so apparent; only one Toy deal features on the first page of its Deals of the Day. However it advertises savings of “40% on select toys from Barbie, Hot Wheels, Fisher-Price and more”. All of these Toys are Mattel-owned brands and their specific discounts have been promoted by banner advertising in the days leading up to Black Friday.
Amazon website 8am (EST) - 23 November 2018
There are a total of 63 Mattel toys under this deal, 27 of which were Amazon exclusives. Edge by Ascential has taken a sample of 10 Toys and compared Amazon’s pricing to that of Target and Walmart.
Unsurprisingly, Amazon listed the lowest prices across all of the items when we look at shelf price alone. Target and Walmart promoted some of these items but largely focused promotional activity on other Mattel items and other brands, under its own Black Friday banners.