Black Friday 2025 Sets New Record as Online Sales Surge and In-Store Traffic Slips

(December 8, 2025) — Black Friday 2025 delivered another historic milestone for U.S. retailers, with shoppers spending heavily online while traditional brick-and-mortar stores saw mixed performance. Early data shows consumers spent an estimated $11.8 billion online on Black Friday alone, according to Adobe Analytics—up 9.1% from 2024 and one of the strongest single-day e-commerce totals ever recorded.

Overall retail spending (online + in-store, excluding autos) grew 4.1% year-over-year, Mastercard SpendingPulse reported, signaling a solid but more measured consumer appetite compared to past holiday surges. Analysts say shoppers are becoming more selective, focusing on targeted purchases rather than broad impulse buying. While total spending is up, consumers are buying fewer items per transaction, but at higher price points—a trend attributed to ongoing inflation and product mix shifts.

E-commerce Dominates the Holiday Kickoff

Digital sales once again outperformed physical retail, continuing a trend that has accelerated sharply over the last decade. Online spending grew by 10.4%, fueled by price-sensitive consumers using comparison tools, mobile shopping, and AI-powered deal alerts. Cyber Week, now often called the “Cyber Five,” is expected to exceed $44 billion in online sales when tallied across Thanksgiving through Cyber Monday.

Retailers with strong digital platforms, fast-shipping options, and integrated loyalty programs were among the biggest winners. Electronics, toys, and apparel saw some of the deepest discounting, driving online conversion rates higher than the year prior.

In-Store Traffic Soft but Steady

Despite strong online performance, physical stores saw uneven results. Early foot-traffic data indicates a 3.6% decline in Black Friday store visits compared to last year. Analysts attribute the dip to several structural changes in consumer behavior:

Many shoppers now spread purchases across November, reducing the urgency of in-person visits.
Doorbuster events have been scaled back as retailers manage margin pressure.
Consumers increasingly prefer hybrid models and buy online, pick up in store (BOPIS), which reduces traditional in-store browsing traffic.

Still, retailers with experiential environments, strong loyalty tie-ins, or unique in-store promotions reported steadier traffic.

Consumers Are Value-Focused but Still Spending

Despite persistent inflation, shoppers showed they are willing to spend, but strategically. Retail Dive reports that retailers are observing “transaction compression”: fewer items in the cart, but higher average selling prices. This suggests consumers are prioritizing big-ticket items or specific needs rather than stocking up on discretionary products.

Shoppers were also more likely to use buy-now-pay-later services, which generated over $1 billion in sales on Cyber Monday alone.

What It Means for Retailers and CRE

For commercial real estate owners and retail operators, the 2025 Black Friday results reinforce ongoing sector divergences:

Strong digital performance benefits retailers with highly integrated omni-channel strategies and last-mile logistics capacity.
Weaker foot traffic challenges older centers that lack experiential anchors or updated tenant mixes.
High consumer selectivity suggests retailers will continue to focus on store productivity rather than footprint expansion.
Power centers and grocery-anchored centers remain comparatively insulated due to necessity-based spending patterns.

Outlook Heading Into December

With the strongest online Black Friday ever recorded and a steady, if restrained, lift in total retail spending, analysts expect a moderate but healthy holiday season. Retailers may face tighter margins due to discounting and cost pressures, but demand signals remain positive.

Cyber Monday broke $14.25 billion in online spending, extending momentum and setting the stage for what could become the most digitally driven holiday season to date.