Online Shopping Is the Winner During Thanksgiving Weekend

U.S. consumers significantly contributed to the holiday shopping spree over the Thanksgiving weekend, with online shopping attaining a staggering $38 billion. This substantial online expenditure suggests a robust holiday shopping season ahead, despite prevailing economic uncertainties.

Data from Adobe Analytics revealed a 7.8% increase in online consumer spending during the five-day segment from Thanksgiving through Cyber Monday, surpassing initial projections of 5.4% growth. Earlier, industry analysts and major retailers had voiced concerns about restrained consumer spending due to inflation-induced budget restrictions. However, enticing deals seemed to have triggered bargain hunting.

The National Retail Federation (NRF) reported that more than 200 million shoppers turned to both brick-and-mortar stores and online platforms during the Thanksgiving weekend. This 2% increase from last year’s figures exceeded NRF’s original estimate of 182 million shoppers.

Given the market trends and customer behaviors, retailers might consider offering even deeper discounts to attract price-conscious consumers. Despite a significant portion of Americans’ holiday shopping still being available for grabs, the NRF maintained its forecast of 3%-4% retail sales growth for the full November-December holiday season.

Consumers spent an average of $321.41 on holiday-related purchases during the Thanksgiving weekend, slightly down from the $325.44 average of last year, according to NRF data.

The convenience of shopping from home and attractive discounts, particularly on electronics and toys, have made online shopping more appealing than in-store shopping this year. The number of online shoppers increased by 3.1% to 134.2 million during the Thanksgiving weekend, offsetting a minor drop in in-person shoppers.

Importantly, the holiday shopping season didn’t focus on one or a few big-ticket items this year. This trend seems to be favoring platforms like Amazon, as it allows for more flexible shopping patterns.

Salesforce data showed a 4.1% increase in online spending during the Thanksgiving weekend compared to last year, with U.S. shoppers spending about $70.8 billion.

Furthermore, in an effort to stretch their Christmas budgets, shoppers are increasingly using Buy Now, Pay Later (BNPL) services like Klarna or Affirm, thereby avoiding extra fees and interest associated with credit card payments. Cyber Monday witnessed a record-breaking $940 million in purchases made using BNPL, marking a 42.5% surge from last year. During the weekend, BNPL transactions through Afterpay also showed a 19% increase, while Black Friday saw a 29% boost in orders placed by U.S. shoppers on Klarna.