As the holiday season unfolds, consumers across the United States are eagerly scanning the internet for deals in anticipation of Cyber Monday, a shopping event that has grown significantly since its inception in 2005. This year, Adobe Analytics predicts that spending will reach a staggering $13.2 billion on Cyber Monday, marking a 6.1% increase from the previous year, thus making it one of the largest shopping days in history.
Cyber Monday is firmly established as a lucrative event for retailers. It is not just a single day of sales; for many retailers, it transforms into a multi-day shopping extravaganza that starts right after Thanksgiving. Amazon is known for kicking off its sales in the early hours of Saturday morning, while other giants like Target and Walmart follow closely by rolling out extended discounts. For example, Target commenced its two-day discount offers on Sunday, while Walmart opted to provide exclusive early access to its Cyber Monday deals for Walmart+ members before making them available to all customers later that evening.
The trend towards e-commerce growth is underscored by metrics collected during the preceding Black Friday and Thanksgiving events. U.S. shoppers spent $10.8 billion online on Black Friday, representing an impressive 10.2% increase compared to the prior year, according to Adobe. In addition, Thanksgiving saw a record $6.1 billion in online spending, further highlighting the increasing preference for online shopping. For context, when comparing these figures to earlier years, Black Friday sales more than doubled since 2017 when online transactions amounted to approximately $5 billion.
Market analysis further reveals that sales attributed to platforms like Salesforce reached $17.5 billion on Black Friday alone. Shopify also reported that their merchants achieved a remarkable $5 billion in sales worldwide during this same timeframe, peaking at $4.6 million per minute. Notably, categories such as clothing, electronics, and cosmetics have taken center stage, leading the surge in consumer spending. Hot-ticket items this holiday season include Lego sets, espresso machines, fitness trackers, and popular beauty products.
Yet, even amidst this upbeat spending forecast, some consumers are experiencing “sticker shock” as they navigate higher prices stemming from post-pandemic inflation. This has raised concerns about overall spending behavior. Nevertheless, many retail economists remain optimistic about continued growth in consumer spending, predicting that numbers will edge up between 2.5% and 3.5% this year, according to the National Retail Federation (NRF).
Another noteworthy trend is the increase in consumer reliance on “buy now, pay later” (BNPL) financing options. More shoppers are expected to utilize these flexible payment methods this holiday season, allowing them the freedom to indulge in gift-giving or even self-gifting without immediate financial burden. This consumer behavior reflects a shift in shopping psychology, with an emphasis on managing cash flow rather than simply enthusiastic spending.
Moreover, a change in shopping habits has also emerged. RetailNext’s initial store traffic data indicated a downturn in physical shopping, with an overall 3.2% drop in store visits during Black Friday compared to last year. According to Sensormatic Solutions, the decline in foot traffic was even more pronounced, registering an 8.2% decrease. This decline has been attributed to the spread of promotional activities over a more extended period rather than concentrated on a single day, making it clear that traditional in-store shopping is no longer the primary avenue for holiday shopping excitement.
Experts have noted that as shopping becomes increasingly more experience-driven, particularly post-COVID, consumers are reconsidering how they spend on material gifts, reflecting a broader trend of investment in experiences over physical goods.
In summary, Cyber Monday stands as a testament to the sustained shift towards e-commerce and the flexibility of shopping options available to consumers today. With a predicted spending record and the continuous evolution of shopping habits, retailers must stay agile and responsive to consumers’ emerging preferences.