Black Friday sales up 4.1% year-on-year

U.S. holiday shoppers have boosted Black Friday sales by 4.1% year-on-year, according to Mastercard SpendingPulse, though inflation-adjusted growth may be closer to 1%. Online sales rose 9.1% to $11.8bn, with Adobe Analytics citing steep discounts as a key driver. However, the data reveals a growing divide: higher-income consumers continue to spend, while low- and middle-income groups cut back amid rising costs for essentials like heating and groceries. Retailers targeting value, such as Walmart, TJ Maxx and Gap, have seen strong performance, unlike Target and Bath & Body Works, which are struggling. Adobe expects $20.2bn in “buy now, pay later” purchases this holiday season, up 11% from 2024. The National Retail Federation forecasts total holiday sales of up to $1tn, a 2.5% increase from last year.