The Thanksgiving weekend witnessed an extraordinary online shopping spree, with U.S. consumers splurging a whopping $38 billion, setting new records. Cyber Week, encompassing the five days from Thanksgiving through Cyber Monday, saw online consumer spending surge by an impressive 7.8%, surpassing initial expectations for a 5.4% rise and signaling a robust start to the holiday shopping season amid economic uncertainties.
Deep discounts on a wide array of products, from beauty items to electronics, played a pivotal role in enticing shoppers. Despite concerns about cautious consumer spending due to inflation, shoppers flocked to blockbuster deals. Over 200 million consumers participated in the Thanksgiving weekend, marking a nearly 2% increase from the previous year, as reported by the National Retail Federation (NRF). The NRF maintains its forecast for 3%-4% retail sales growth for the entire November-December holiday season.
Consumers are displaying a growing inclination towards price consciousness, prompting retailers to offer deeper discounts. With half of Americans’ holiday shopping still ahead, the NRF anticipates that shoppers will continue seeking promotions and bargains. On average, consumers spent $321.41 on holiday-related purchases during the Thanksgiving weekend, slightly down from $325.44 the previous year.
Online sales took center stage, with discounts as high as 31% on electronics and 27% on toys, coupled with the convenience of last-minute online purchases. Online shoppers increased by 3.1% to 134.2 million, compensating for a slight dip in in-store shoppers.
Notably, Buy Now, Pay Later (BNPL) services, including Klarna and Affirm, gained significant traction. A record $940 million worth of purchases were made through BNPL on Cyber Monday, marking a substantial 42.5% surge from the previous year and underscoring consumers’ preference for flexible payment options.
As the holiday season progresses, retailers are optimistic about increased consumer spending. With Christmas falling on a Monday this year, heightened shopper traffic levels are expected throughout the selling season.