In an attempt to capitalize on Cyber Monday, the post-Thanksgiving shopping frenzy, American consumers are searching the internet for online bargains.
Cyber Monday, a term created in 2005 by the National Retail Federation, has become the largest online shopping day of the year because of the deals and the hype the industry has created to support it, despite the fact that e-commerce is now a part of many people’s daily routines and the holiday shopping season.
Online retailer Adobe Analytics predicts that Monday’s consumer spending will reach a record $13.2 billion, 6.1% more than the previous year. For e-commerce, that would make it the biggest shopping day of the year and the season.
A Cyber Monday sale, which started over the Thanksgiving weekend, is a multi-day event for a number of large merchants.On Saturday, just after midnight Pacific time, Amazon ended their sales extravaganza. Overnight Sunday marked the start of Target’s two-day sale promotions on its website and app.Three hours later, at 8 p.m. Eastern time, Walmart released its Cyber Monday deals to all shoppers after launching them for Walmart+ members on Sunday afternoon.
The amount that consumers are willing to spend during Cyber Week—the five main shopping days between Thanksgiving and Cyber Monday—is a good indicator of their spending intentions.
FILE – An Amazon Prime delivery person lifts packages while making a stop on Nov. 28, 2023, in Denver. (AP Photo/David Zalubowski, File)
Image courtesy of David Zalubowski/Associated Press
After the post-pandemic period of inflation, which left prices for many goods and services higher than they were three years before, many American consumers are still suffering from sticker shock. However, the economy has continued to grow at a steady rate, and retail sales have remained strong.
Delinquencies and credit card debt have been increasing concurrently. This holiday season, more consumers than ever before are also planning to use buy now, pay later programs, which let them postpone paying for gifts, seasonal décor, and other things.
Additionally, a number of economists have cautioned that President-elect Donald Trump’s plan to slap tariffs on foreign goods entering the US next year will result in increased prices for everything from cars to food to clothing.
Holiday shoppers are expected to spend more this year than they did last year, both in-store and online, according to the National Retail Federation. However, the trade association stated that the rate of spending growth will decrease somewhat, increasing from 3.9% in 2023 to 2.5% to 3.5%.
Although early data from other sources indicates some promising signs for businesses, a complete picture of consumer spending patterns throughout the holiday season won’t become apparent until the government releases sales data for the period.
According to Adobe Analytics, American consumers spent $10.8 billion online on Black Friday, a 10.2% increase over the previous year. Additionally, that is more than twice as much as what people spent in 2017, when Black Friday generated almost $5 billion in online sales. According to Adobe, Thanksgiving Day online spending by consumers reached a record $6.1 billion.
Black Friday internet sales were expected to be $17.5 billion in the United States and $74.4 billion worldwide by software company Salesforce, which also keeps track of online purchases.
Shopify, an e-commerce platform, reported that its merchants made a record $5 billion in sales on Black Friday globally. According to the Canadian corporation, sales peaked at $4.6 million per minute, with apparel, cosmetics, and exercise gear ranking as the top categories by volume.
According to Adobe, the top categories for holiday spending on Thanksgiving and Black Friday were toys, electronics, home goods, self-care, and cosmetics. goods that were popular included skin care goods, fitness monitors, espresso machines, Lego sets, and makeup.
The massive crowds that were traditionally associated with the day after Thanksgiving are now more than happy to buy from the comfort of their homes, as evidenced by other data showing actual establishments saw fewer people on Black Friday.
Store traffic on Friday was down 3.2% in the U.S. compared to last year, with the largest decline occurring in the Midwest, according to preliminary data from RetailNext, a company that tracks foot activity in stores in real time.
Retail store attendance on Black Friday was 8.2% lower than in 2023, according to Sensormatic Solutions’ early study. Sensormatic Solutions also measures store traffic.
Because many shops offered substantial discounts before and after Black Friday, in-store traffic was being dispersed over many days, according to Grant Gustafson, head of retail consulting and analytics at Sensormatic Solutions.
According to Gustafson, several of the prolonged Black Friday promotions actually resulted in a slightly lower volume of visits than anticipated.
Even though toys and technology are usually in style over the holidays, analysts point out that in recent years, especially as the COVID-19 pandemic subsided, consumers have shifted their buying habits to more experience-driven purchases.
Ahead of the post-Thanksgiving shopping weekend, Jie Zhang, a marketing professor at the University of Maryland’s Robert H. Smith School of Business, told The Associated Press that he anticipated consumers to treat themselves to a little more self-gifting.
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Wyatte Grantham-Philips, a New York-based AP Business Writer, contributed to this report.
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