Spending on Cyber Monday is set to hit a record $11.2 billion as discounts on everything drive shoppers to spend even as stubbornly high inflation persists. Cyber Monday is the biggest U.S. online shopping day.
The Adobe Analytics report predicts spending on Cyber Monday to rise 5.2 percent as inflation-weary consumers have been putting off holiday shopping for weeks in the hopes of deep post-Thanksgiving markdowns.
Last year, Cyber Monday sales fell 1.4 percent. Retailers spread out promotional deals across weed last year in order to better manage inventories amid widespread product shortages.
There was worry in the retail industry that this year’s big shopping event would also be passé. However, big single-day shopping events appear to be back in vogue this year with major retailers including Target, Macy’s, and Best Buy expecting a return to pre-pandemic shopping patterns.
U.S. shoppers also spent a record $9.12 billion online on Black Friday, according to Adobe Analytics. This is up from 2.3 percent last year.
However, brick-and-mortar stores and malls saw thinner crowds than usual for Black Friday deals. In some parts of the country, bad weather was blamed.
Also blamed though was high inflation and consumers wanting to be more conscious of how they spend their money.
Now, analytics expect that demand is growing even when inflation is factored in. Some analysts have said top-line numbers will be boosted by higher prices and the amount of items consumers purchase could remain unchanged — or even fall — compared to prior years.
Profit margins are also expected to be tight for retailers offering deeper discounts to attract budget-conscious consumers and clear out their bloated inventories.
Consumers who feared leaving their homes and embraced e-commerce during the pandemic are heading back to physical stores in greater numbers this year as normalcy returns.