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Despite consumer concerns over higher prices caused by inflation, spending for the holiday shopping season got off to a strong start over the weekend. Total retail sales in the United States, including in-store and e-commerce transactions but excluding the automotive sector, were up more than 12% on Black Friday from the previous year, according to Mastercard SpendingPulse. Black Friday, the day after Thanksgiving, marks the traditional start of the U.S. Christmas shopping season.
E-commerce merchants posted a record $9.12 billion in sales on Black Friday, a 2.3% increase from the previous year according to the latest Adobe Analytics figures. Products helping to drive the increase included electronics, smart-home items, audio, and exercise equipment and toys, each of which posted a more than two-fold gain from the same period a year ago, according to Adobe.
“With holiday promotions kicking off long before the Thanksgiving weekend, consumers have been shopping strategically for the season’s best deals,” Michelle Meyer, North America chief economist, Mastercard Economics Institute, says in a prepared statement. “Retailers delivered on Black Friday with deals that enticed consumers to fill their carts despite the inflationary environment.”
E-commerce sales remained strong through the weekend, according to Adobe. Sales on Saturday totaled $9.55 billion, up 4.4% from a year ago, and $4.96 billion on Sunday, a 6.1% increase.
Overall, e-commerce sales between Nov. 1 and Nov. 27. totaled $96.42 billion, up 2.1% from a year ago, Adobe says. During that period consumers have been spending more than $2 billion a day online, with 19 days above $3 billion. Broad, early discounts were the main drivers for the shift in consumer spending, Adobe says.
Looking ahead to Cyber Monday, the Monday after Thanksgiving, Adobe expects consumers to spend between $11.2 billion and $11.6 billion, making it the biggest online shopping day of the year. By comparison, consumers spent $10.7 billion on Cyber Monday in 2021, Adobe says.
Deep discounts are expected to help drive Cyber Monday sales, with discounted prices for toys as high as 33% off list price. Online shoppers can also expect to find discounts as high as 27% off computers, 25% off electronics and 19% off apparel, Adobe says.
Despite the projected uptick in Cyber Monday sales, online sales for the week are expected to account for 19% of holiday season sales, down from 21% in 2021, according to fraud-prevention specialist Signifyd.
