Adobe: US Online Holiday Sales to Increase Nearly 5%
Adobe released its online shopping forecast for the 2023 holiday season, covering the period from Nov. 1 through Dec. 31. Based on Adobe Analytics data, the analysis provides a comprehensive view into U.S. e-commerce by analyzing commerce transactions online, covering over 1 trillion visits to U.S. retail sites. Adobe expects U.S. online holiday sales to hit $221.8 billion this holiday season, representing 4.8% growth year-over-year. Never-before seen discounts and the increased usage of buy now, pay later, which is expected to drive $17 billion in online spending (vs. $14.5 billion in 2022, up 16.9 percent), will boost spending this season as consumers look to stretch their budgets. Additionally, shopping on mobile devices is expected to hit a major milestone, surpassing desktop and driving over half (51.2 percent) of all online spending this season.
Total Retail's Take: A rather strong online spending forecast for the holiday season may help to ease some of the concerns that retailers currently have about their businesses. The impact of macro-economic factors such as rising interest rates, the resumption of student loan payments, and persistent price inflation may be outweighed by Americans willingness to take on credit card debt to purchase holiday gifts for their loved ones. That said, retailers are likely to be competing on price more this holiday season than previous years, forcing them to find other ways to protect profit margins.
In an Adobe press release announcing the online holiday spending forecast, Patrick Brown, the company's vice president of growth marketing, offered the following assessment of the data: “Despite an unpredictable economic environment, where consumers face several challenges including rising interest rates, we expect strong e-commerce growth this season on account of record discounts and flexible payment methods. Buy now, pay later in particular has become increasingly mainstream and will make it easier for shoppers to hit the buy button, especially on mobile devices where over half of online spending will take place.”