US shoppers spend $38 billion online during Thanksgiving weekend

US shoppers spend $38 billion online during Thanksgiving weekend

Robert Besser
01 Dec 2023, 01:01 GMT+10

• Despite the ongoing economic uncertainty, major discounts during the Thanksgiving weekend enticed U.S. shoppers, who spent some US$38 billion online
• According to data from Adobe Analytics, online spending increased 7.8 percent during Cyber Week, the five days from Thanksgiving through Cyber Monday, exceeding its initial forecast of a5.4 percent rise
• Before the Thanksgiving shopping season, industry forecasters and retailers predicted low consumer spending due to ongoing inflation constraining budgets, but bargain-hunters took advantage of deals

WASHINGTON D.C.: Despite the ongoing economic uncertainty, major discounts during the Thanksgiving weekend enticed U.S. shoppers, who spent some US$38 billion online.

According to data from Adobe Analytics, online spending increased 7.8 percent during Cyber Week, the five days from Thanksgiving through Cyber Monday, exceeding its initial forecast of a5.4 percent rise.

Before the Thanksgiving shopping season, industry forecasters, including Deloitte and retailers such as Walmart and Macy’s, predicted low consumer spending due to ongoing inflation constraining budgets, but bargain-hunters took advantage of deals.

AllianceBernstein Chief Investment Officer Jim Tierney, said, “I do not think we are seeing great sales numbers, but I think expectations were sufficiently beaten down that this was sort of expected, if not a little bit better.”

This week, the National Retail Federation (NRF) said that during the Thanksgiving weekend, more than 200 million shoppers made in-store and online purchases, a two percent increase from last year and surpassing the trade association’s prediction of 182 million.

Jeffrey Roach, chief economist at LPL Financial, “It seems like individuals are becoming a little more price conscious this season. It is probably worth discounting a bit more, from retailers’ perspectives, and seeing if the consumer will respond accordingly.”

Maintaining its forecast for three percent to four percent retail sales growth during the November-December holiday season, the NRF said shoppers will continue to search for promotions and bargains.

NRF data showed that, on average, consumers spent $321.41 on holiday-related purchases, including toys, electronics and gift cards during the Thanksgiving weekend, compared with $325.44 in 2022.

Online shoppers rose 3.1 percent to 134.2 million during the Thanksgiving weekend, while in-store shoppers totaled 121.4 million, down from 122.7 million in 2022, the NRF added.

Shoppers are also increasingly using Buy Now, Pay Later (BNPL) services, such as Klarna or Affirm, with a record $940 million worth of purchases being made through BNPL on Cyber Monday, surging 42.5 percent from 2022 and exceeding Adobe’s earlier estimate for an 18.8 percent rise.