Black Friday Breaks Records—But What Happens Next?

Every year, Black Friday seems to outdo itself, and 2024 was no exception. According to Adobe Analytics, shoppers spent a record-breaking $10.8 billion online this Black Friday, marking a 10% increase compared to last year. To put that into perspective, shoppers spent $11.3 million per minute between 10 a.m. and 2 p.m.

Brick-and-mortar stores, while less crowded than in years past, still saw significant traffic. About 126 million people visited physical stores over the holiday weekend, according to the National Retail Federation (NRF). Meanwhile, 124 million consumers opted to shop online, with a staggering 69% of online purchases made via mobile devices.

Mastercard SpendingPulse highlighted some regional trends, with states like Massachusetts, Washington D.C., and Colorado leading the way in spending. On average, holiday shoppers shelled out $235 on gifts, with nearly half of that going toward clothing and accessories.

Yet, while these numbers are impressive, there’s a hidden cost lurking behind this spending: returns.

The Reality of Black Friday Returns

As holiday shopping reaches record highs, so does the likelihood of returned items. Every year retailers brace themselves for the inevitable influx of unwanted gifts.

The National Retail Federation estimates that 17% of holiday purchases are returned, translating into $700+ billions of dollars in goods making its way back through the supply chain. And this post-holiday flood of returns isn’t just a logistical headache—it’s a major challenge for manufacturers and brands.

Returns create a ripple effect that disrupts inventory management, impacts cash flow, and complicates forecasting. Without the right systems in place, brands can end up with inaccurate inventory levels, leaving them blind to what’s actually available for sale. This can lead to overstocking, missed sales opportunities, or even strained relationships with retail partners.

Why Manufacturers Need Smarter Tools

Managing returns effectively is no longer optional—especially for manufacturers working with retail partners who expect seamless inventory updates. When manufacturers can accurately reflect stock levels and handle returns efficiently, they not only streamline their own operations but also become a more reliable partner to retailers.

This is where inventory management technology comes into play. A robust solution can:

• Update inventory in real-time to reflect returns and stock levels accurately.
• Reduce supply chain inefficiencies caused by return surges.
• Enhance retailer relationships by providing clear visibility into product availability.

Tools like Pantry AI offer a modern approach to inventory management. By automating updates and ensuring accuracy, manufacturers can tackle returns with confidence, support their retail partners, and position themselves for long-term success.

Ready to Streamline Your Returns Process?

As returns flood the supply chain this holiday season, make sure your inventory systems are up to the challenge. With solutions like Pantry AI, you can turn a logistical headache into a competitive advantage.

Schedule a demo today to learn how Pantry AI can help you manage returns, maintain accurate stock levels, and strengthen your retail partnerships.