Cyber Monday shoppers expected to set a record on the year's biggest day for online shopping

4 hours ago

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Shoppers in the United States are searching the web for online discounts as they prepare to make the most of the shopping frenzy that follows Thanksgiving, especially on Cyber Monday.

Although online shopping has become an integral part of many people's daily lives and the holiday shopping period, Cyber Monday — a term introduced in 2005 by the National Retail Federation — has emerged as the most significant day for online shopping each year. This is largely due to the enticing promotions and the excitement generated by the industry to drive sales.

Adobe Analytics, a tool that monitors online shopping trends, anticipates that shoppers will spend an unprecedented $13.2 billion this Monday, marking a 6.1% increase compared to the previous year. This figure would establish it as the top shopping day for e-commerce this holiday season, as well as for the entire year.

For many big retailers, Cyber Monday isn't just a single day; it's a multi-day event that starts during the Thanksgiving holiday. Amazon launched its sales event just after midnight Pacific time on Saturday. Target began offering discounts on its website and app late Sunday night, with two days of deals available. Walmart introduced its Cyber Monday specials for Walmart+ members on Sunday afternoon and made them available to all shoppers three hours later, at 8 p.m. Eastern time.

Consumer spending during Cyber Week—the five significant shopping days from Thanksgiving to Cyber Monday—gives a clear picture of how much people are ready to spend for the holiday season.

A lot of consumers in the U.S. are still feeling the impact of rising prices after the inflation spike that occurred after the pandemic, which has led to many items costing more than they did three years ago. Despite this, retail sales have stayed robust, and the economy continues to expand steadily.

Meanwhile, the amount of credit card debt and late payments has been increasing. This holiday season, more consumers than ever are expected to take advantage of "buy now, pay later" options, enabling them to postpone payments for holiday decorations, gifts, and various other purchases.

Numerous economists have expressed concerns that President-elect Donald Trump's proposal to implement tariffs on imported goods next year could result in increased costs for a wide range of products, including food, clothing, and cars.

The National Retail Federation predicts that holiday shoppers will spend more this year, both in physical stores and online, compared to last year. However, the rate of spending increase is anticipated to decelerate somewhat, with growth expected to be between 2.5% and 3.5%, down from 3.9% in 2023.

We won't have a clear picture of how consumers are spending during the holiday season until the government publishes the sales figures. However, early reports from various sources are already indicating some positive trends for retailers.

According to Adobe Analytics, American shoppers shelled out $10.8 billion online on Black Friday, marking a 10.2% rise from the previous year. This figure is more than twice what was spent back in 2017, when online sales for Black Friday were around $5 billion. Additionally, shoppers set a new high by spending $6.1 billion online on Thanksgiving Day, according to Adobe.

Salesforce, a software company that monitors online shopping trends, projected that Black Friday online sales reached $17.5 billion in the United States and $74.4 billion worldwide.

E-commerce platform Shopify reported that its merchants generated an impressive $5 billion in sales globally on Black Friday. During the busiest moments, sales surged to $4.6 million every minute. The highest sales were observed in categories such as apparel, beauty products, and fitness gear, as stated by the Canadian company.

According to Adobe, major categories that fueled holiday shopping during Thanksgiving and Black Friday included toys, electronics, household items, and self-care and beauty products. Popular items this year featured Lego kits, espresso makers, fitness monitoring devices, cosmetics, and skincare treatments.

Additional information indicated that brick-and-mortar stores experienced a drop in customer numbers on Black Friday. This highlights a significant shift, as the bustling crowds that used to characterize the day after Thanksgiving now prefer to shop from the convenience of their own homes.

RetailNext, a company that tracks real-time customer visits in stores, has indicated that its initial data reveals a 3.2% decrease in store traffic across the U.S. on Friday compared to the previous year, with the most significant decline occurring in the Midwest region.

Sensormatic Solutions, known for monitoring foot traffic in stores, reported that its initial findings indicate a decrease in retail store visits on Black Friday, which fell by 8.2% compared to the previous year, 2023.

Grant Gustafson, who leads retail consulting and analytics at Sensormatic Solutions, pointed out that foot traffic in stores has been distributed over several days. This shift is due to many retailers providing significant discounts both leading up to and following Black Friday.

Gustafson mentioned that the extended Black Friday sales resulted in lower-than-expected foot traffic on the actual day.

Though tangible gifts like toys and gadgets remain favorites during the holiday season, specialists point out that people have increasingly shifted their spending towards experiences in recent years, particularly as the effects of the COVID-19 pandemic have lessened.

Jie Zhang, a marketing professor at the Robert H. Smith School of Business at the University of Maryland, shared with The Associated Press before the shopping frenzy that follows Thanksgiving that he anticipates consumers will be more willing to treat themselves this year.

This report includes contributions from AP Business Writer Wyatte Grantham-Philips, who is based in New York.