Consumers Scour the Internet for Online Deals on Cyber Monday
Consumers in the United States are on the hunt for online deals as they take advantage of the post-Thanksgiving shopping marathon with Cyber Monday.
Record Spending Expected
Adobe Analytics expects consumers to spend a record $13.2 billion on Monday, 6.1% more than last year. This would make it the season’s and the year’s biggest shopping day for e-commerce. In a survey from financial company Deloitte, consumers said they expect to spend a record $650 during Black Friday-Cyber Monday shopping events, up 15% from last year.
Retailers Kick Off Sales
For several major retailers, a Cyber Monday sale is a days-long event that began over the Thanksgiving weekend. Amazon kicked off its sales event right after midnight Pacific time on Saturday. Target’s two days of discount offers on its website and app began overnight Sunday. Walmart rolled out its Cyber Monday offers for Walmart+ members on Sunday afternoon and opened it up to all customers three hours later, at 8 p.m. ET.
Consumers Continue to Experience Sticker Shock
Many U.S. consumers continue to experience sticker shock following the period of post-pandemic inflation that left prices for many goods and services higher than they were three years ago. However, retail sales have remained strong, and the economy has kept growing at a healthy pace.
Credit Card Debt and Delinquencies on the Rise
At the same time, credit card debt and delinquencies have been rising. More shoppers than ever are also on track to use "buy now, pay later" plans this holiday season, which allows them to delay payments on holiday decor, gifts, and other items.
National Retail Federation Expectations
The National Retail Federation expects holiday shoppers to spend more this year both in stores and online than last year. However, the pace of spending growth will slow slightly, growing 2.5% to 3.5% – compared to 3.9% in 2023.
Online Shopping Data
U.S. shoppers spent $10.8 billion online on Black Friday, a 10.2% increase over last year, according to Adobe Analytics. That’s also more than double what consumers spent in 2017, when Black Friday pulled in roughly $5 billion in online sales. Consumers also spent a record $6.1 billion online on Thanksgiving Day, Adobe said.
Key Categories
Toys, electronics, home goods, self-care, and beauty categories were among the key drivers of holiday spending on Thanksgiving and Black Friday, according to Adobe. "Hot products" included Lego sets, espresso machines, fitness trackers, makeup, and skin care.
Physical Stores See Fewer Customers
Other data showed physical stores saw fewer customers on Black Friday, underscoring how the huge crowds that were once synonymous with the day after Thanksgiving are now more than happy to shop from the comfort of their homes.
Conclusion
As consumers continue to take advantage of online deals on Cyber Monday, retailers are expecting a record-breaking day of spending. While some consumers may be experiencing sticker shock, many are still eager to indulge in holiday shopping. With more shoppers turning to "experience-driven spending" and "buy now, pay later" plans, it will be interesting to see how the holiday season unfolds.
FAQs
Q: What is Cyber Monday?
A: Cyber Monday is the biggest online shopping day of the year, coined by the National Retail Federation in 2005.
Q: How much is expected to be spent on Cyber Monday?
A: Adobe Analytics expects consumers to spend a record $13.2 billion on Monday, 6.1% more than last year.
Q: What are the key categories for holiday spending?
A: Toys, electronics, home goods, self-care, and beauty categories are among the key drivers of holiday spending on Thanksgiving and Black Friday.
Q: How much was spent online on Black Friday?
A: U.S. shoppers spent $10.8 billion online on Black Friday, a 10.2% increase over last year, according to Adobe Analytics.
