Consumers across the United States are actively searching for online bargains as they gear up for the post-Thanksgiving shopping spree, culminating in Cyber Monday.
This event, officially termed by the National Retail Federation in 2005, has been established as the largest day for online shopping each year, driven by attractive promotions and a flurry of marketing efforts within the retail industry.
According to Adobe Analytics, which monitors online purchasing trends, shoppers are projected to splurge a record $13.2 billion on Cyber Monday—representing a 6.1% increase compared to last year. This forecast positions it as both the most significant shopping day of the season and the entire year for e-commerce.
For many major retailers, Cyber Monday offers have evolved into multi-day sales events kicking off with Thanksgiving. Amazon began its promotions right after midnight Pacific Time on Saturday. Target followed up with two days of discounts launching overnight Sunday, while Walmart unveiled its Cyber Monday deals for Walmart+ members on Sunday afternoon and opened them to all customers later in the evening.
Consumer expenditure throughout Cyber Week, which consists of the five pivotal shopping days from Thanksgiving to Cyber Monday, serves as a critical indicator of shoppers’ willingness to spend on holiday gifts.
Despite ongoing concerns about inflation leaving many goods and services pricier than three years ago, retail sales have remained robust, and the economy continues to expand sustainably.
However, challenges persist, including a rise in credit card debt and defaults. This year, an increasing number of consumers are expected to utilize “buy now, pay later” schemes, enabling them to postpone payments for festive decorations, gifts, and other items.
Economic experts have also cautioned that a proposed tariff plan by President-elect Donald Trump could inflate prices across a broad spectrum of goods, affecting everything from food products to clothing and automobiles.
The National Retail Federation anticipates that holiday shoppers will likely spend more this year, both online and in physical stores, compared to the previous year. Still, they predict a slight slowdown in spending growth, estimating an increase of between 2.5% to 3.5%, a decrease from last year’s growth of 3.9%.
A clearer picture of holiday consumer spending patterns will emerge once the government releases actual sales data for the period. However, preliminary reports from various sources indicate some positive trends for retailers.
For instance, U.S. consumers spent $10.8 billion online during Black Friday, marking a 10.2% rise compared to last year, according to Adobe Analytics. This figure is also more than double the online spending recorded in 2017, which was around $5 billion. Consumers additionally registered a historic expenditure of $6.1 billion online on Thanksgiving Day, as noted by Adobe.
Salesforce, another company tracking online shopping data, estimated Black Friday online sales at $17.5 billion domestically and $74.4 billion worldwide.
Shopify reported that its merchants achieved an unprecedented $5 billion in global sales on Black Friday, with sales peaking at $4.6 million per minute. Popular categories included clothing, beauty products, and fitness items.
Key spending categories during Thanksgiving and Black Friday encompassed toys, electronics, home goods, and self-care products, with top items featuring Lego sets, espresso machines, and fitness trackers, according to Adobe analytics.
Other statistics indicated a noticeable decrease in physical store visitors on Black Friday, highlighting a shift towards online shopping within the comfort of homes.
RetailNext, which measures in-store foot traffic, noted an early decline of 3.2% in U.S. store visits on Black Friday compared to the previous year, with the Midwest showing the most significant decrease.
Similarly, Sensormatic Solutions’ preliminary analysis reported an approximate 8.2% drop in retail store traffic for Black Friday 2023.
Grant Gustafson, director of retail consulting at Sensormatic Solutions, explained that store traffic was dispersed over multiple days as retailers extended their discounts beyond Black Friday, leading to lower than anticipated visitor numbers on the actual day.
As traditional items such as toys and electronics remain holiday favorites, analysts observe that consumers are increasingly prioritizing “experience-driven spending” in recent years, particularly in the aftermath of the COVID-19 pandemic.
Jie Zhang, a marketing expert at the University of Maryland’s Robert H. Smith School of Business, mentioned that he foresees shoppers allowing themselves more indulgences in self-gifting as they approach the holidays.