Online sales spiked by 2000% during final hours of Black Friday, while shoppers prioritized electronics and marketplace purchases
NEW YORK, Dec. 2, 2020 /PRNewswire/ -- Klarna, the leading global payments provider and shopping service, today released new data reporting a massive spike in US sales during the final hours of Black Friday. Between the hours of 9-11 pm PT/12-2 am ET on November 27th, sales made using the Klarna app, which allows users to shop at any online store, increased by over 2000% compared to an average shopping day in the US.
Klarna's new data also reveals the most popular product categories among generations, indicating that US shoppers were primarily focused on electronics and marketplace purchases during Black Friday.
"US shoppers were the most active towards the end of the day on Black Friday, indicating that consumers who were working or busy during the day were still eager to take advantage of last-minute Black Friday deals," said David Sykes, Head of US at Klarna. "Our proprietary data also indicates that shoppers were purchasing holiday gifts for their loved ones on Black Friday, taking advantage of mobile shopping and flexible payment options to shop for products in the electronics, marketplaces, and children's categories."
KEY FINDINGS
-- Sales through the US Klarna app were up over 2000% between 9-11 pm
PT/12-2 pm ET on Black Friday.
-- Compared with an average shopping day during the third quarter
(July-September), sales on Black Friday increased the most among Gen Z
shoppers, but Millennials accounted for the biggest group of shoppers.
-- The most popular shopping categories on Black Friday were electronics
and marketplaces. The electronics category saw 47% growth in share of
wallet across all generations on Black Friday compared to the baseline
day, while the marketplaces category saw 42% growth in share of wallet
across all generations on Black Friday, compared to the average baseline
day.
-- Children's products' share of wallet grew 16% across all generations on
Black Friday compared to an average day during the third quarter. This
growth was especially pronounced among Millennials (up 24%) and Gen Xers
(up 4%), as many parents focused on buying holiday gifts for their kids.
-- Food and beverage share of wallet increased by 9% on Black Friday across
all generations compared with an average day, indicating consumers were
eager to stock up early due to pandemic concerns. Gen Xers and
Millennials shifted their spending towards this category, increasing
their share of wallet on these items by 65% and 13%, respectively,
compared to the average shopping day.
-- Gen Zers and Gen Xers shifted their spending away from the health and
beauty category, decreasing their share of wallet spent on these items
by 16% and 18%, respectively, compared to the average day in the
previous quarter. However, Baby Boomers increased their share of wallet
spent on this category by 11%.
-- Home and garden was less of a priority for shoppers across all
generations during Black Friday, which registered a 27% drop in share of
wallet on Black Friday compared to the average day during the third
quarter.
Klarna has been analyzing share of wallet, or how its app users are dividing their spending among different shopping categories, to identify which categories consumers are shopping most often through the Klarna app. Throughout November and December, the company will continue to analyze proprietary data weekly to identify notable insights into consumer behavior during the critical 2020 holiday peak season period.
Methodology
Klarna analyzed purchases made through Klarna's US in-app shopping feature on November 27 (Black Friday) compared to an average baseline day in the US during the third quarter (July-September), and compared to an average day during the previous week (ended November 22).
The data indicates distribution of purchase volumes among the following selected categories:
-- Children's products: children's and infant clothing stores, childcare
services
-- Food and beverage: grocery stores and supermarkets; fast food;
convenience stores and specialty markets (including vitamins
supplements); candy, nut and confectionery stores; ice cream and cheese
shops; and bakeries
-- Home and garden: furniture, tools and home improvement, pet supplies,
kitchenware, plants and flowers, and cleaning products
-- Health and beauty: health, beauty and cosmetics; body and haircare;
personal care; dietary supplements; fragrances; and prescription optics
-- Leisure, sports and hobby: sports and outdoor gear, concept stores,
hobby articles, prints and photos, costumes, and party supplies
-- Marketplace: items purchased from the likes of Amazon.com, Walmart.com,
Target.com and eBay.com
-- Electronics: diversified electronics, electronic equipment and related
accessories, household electronics (including white goods and
appliances), office machines and related accessories (excluding
computers), and car electronics
Klarna also compared hour-by-hour sales during an average day in the US during the first, second and third quarters, versus hourly sales during Black Friday. The data indicated periods of significant growth during specific hours of Black Friday.
About Klarna
We make shopping smoooth. With Klarna, consumers can buy now and pay later, so they can get what they need today. Klarna's offering to consumers and retailers includes payments, social shopping and personal finances. Over 200,000 retail partners, including H&M, IKEA, Expedia Group, Samsung, ASOS, Peloton, Abercrombie & Fitch, Nike and AliExpress, have enabled Klarna's innovative shopping experience online and in-store. Klarna is ranked number five on the 2020 CNBC Disruptor 50 list, is the most highly valued fintech in Europe with a valuation of $10.65 billion, and is one of the largest private fintechs globally. Klarna was founded in 2005, has over 3,500 employees and is active in 17 countries. For more information, visit klarna.com.
Media Relations Contacts:
Berns Communications Group
Michael McMullan / Danielle Poggi
mmcmullan@bcg-pr.com / dpoggi@bcg-pr.com
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