Consumers in the United States are eagerly participating in the post-Thanksgiving shopping extravaganza known as Cyber Monday. This online shopping phenomenon, coined by the National Retail Federation in 2005, has become the pinnacle of e-commerce sales each year, fueled by enticing deals and industry hype.
Adobe Analytics projects a record-breaking $13.2 billion in online spending on Cyber Monday, a 6.1% increase from the previous year, making it the largest e-commerce shopping day of the season and the year.
Major retailers have extended Cyber Monday sales into multi-day events, with Amazon, Target, and Walmart offering discounts starting over the Thanksgiving weekend.
Consumer spending during Cyber Week, spanning from Thanksgiving to Cyber Monday, serves as a barometer for holiday shopping trends. Despite post-pandemic inflation leading to higher prices, retail sales have remained robust, with an increasing number of shoppers opting for 'buy now, pay later' plans.
The National Retail Federation anticipates higher holiday spending this year, both in physical stores and online, albeit at a slightly slower growth rate compared to the previous year.
While official sales data is pending release, preliminary figures indicate a strong start to the holiday shopping season. Black Friday online sales surged by 10.2% year-over-year, reaching $10.8 billion in the U.S., with Thanksgiving Day online sales hitting a record $6.1 billion.
Key categories driving holiday spending include toys, electronics, home goods, self-care, and beauty products. Online sales on Black Friday were estimated at $17.5 billion in the U.S. and $74.4 billion globally, with Shopify merchants alone generating $5 billion in sales.
Physical stores experienced reduced foot traffic on Black Friday, reflecting a shift towards online shopping convenience. RetailNext reported a 3.2% decline in store traffic in the U.S., while Sensormatic Solutions noted an 8.2% drop compared to the previous year.
Experts highlight a trend towards 'experience-driven spending,' with consumers increasingly indulging in self-gifting and seeking unique experiences, especially as the impact of the COVID-19 pandemic lessens.
