Adobe: Record $222.1B Spent Online This Holiday Season
Online spending rose 4.9 percent year-over-year, setting a record for e-commerce during the holiday season, as shoppers pounced on discounts and leaned on buy now, pay later to cover more of their purchases, according to Adobe Analytics. Sales totaled $222.1 billion on retailers’ websites and apps from Nov. 1 to Dec. 31, according to Adobe. Adobe’s data covers more than 1 trillion visits to U.S. retail websites, 100 million unique items, and 18 total product categories. One reason for big spending in November and December? Big discounts. Adobe found that discount levels hit record highs during the holiday season.
Total Retail's Take: While online spending was strong during the holiday season, driven in large part by deal-seeking consumers, the concern for retailers is will this mean curtailed consumer spending in Q1 and further into the new year? For shoppers who went over budget during the holiday season to buy gifts for family, friends and themselves, the early months of 2024 could mean a pull back on spending as they pay off holiday bills.
However, before looking ahead at what's to come, Vivek Pandya, lead analyst, Adobe Digital Insights, offered his thoughts on the holiday season e-commerce data. "In an uncertain demand environment, retailers leaned on discounting and flexible payment methods to entice shoppers this holiday season. The strategy was effective, driving record spend online during big days like Cyber Monday and Black Friday, and a record 11 days that surpassed $4 billion in daily spend this season.”
Will consumers continue to show resiliency and keep spending in the face of economic uncertainty? Time will tell.