Americans set a new record for Thanksgiving online shopping, signaling robust economic activity despite inflation concerns, according to new data from Adobe Analytics.
Adobe Analytics reported $5.6 billion in online sales during the Thanksgiving holiday on Thursday, marking a 5.5 percent increase from last year. The figure shatters previous records, and represents a near doubling of the $2.87 billion spent in 2017. Mobile sales took the lions share, accounting for $3.3 billion or 59 percent of total online sales.
Meanwhile, Salesforce's data for money spent during Thanksgiving showed a similar upward trend, with U.S. online sales reaching roughly $7.5 billion, a modest 1 percent year-over-year growth.
The surge in Thanksgiving spending may be just the start, as Adobe projects an additional $9.6 billion in online sales for Black Friday, anticipating a 5.7 percent increase compared to last year. Salesforce, however, sees consumer participation extending throughout next week, predicting that 25 percent of all holiday sales are going to come during Cyber Week, which is between November 27 and December 1.
Why Are Americans Shopping Outside of Black Friday?
The trend of advancing holiday shopping deals into early November, which gained momentum during the COVID-19 pandemic, is becoming the new norm as companies start Black Friday sales earlier, and extend the deals throughout December.
Despite a cooling inflation rate and an uptick in sales, consumer sentiment remains cautious, shadowed by fears of a possible reversal in the softening inflation trend. The University of Michigan's consumer survey published on Wednesday indicates that a rise in price rises expectations, jumping to an annual pace of 4.5 percent over the next year, up from previous months. Simultaneously, the Consumer Price Index (CPI) for October shows a year-over-year increase of 3.2 percent, a drop from September's 3.6 percent.
Retailers' Cautious Forecasts
Record-breaking Thanksgiving sales and Black Friday projections illustrate a dynamic retail environment where traditional patterns persist amidst evolving consumer behaviors and economic challenges.
Amidst positive economic signals, retailers are treading carefully. Major brands like Walmart, Coach, and Best Buy are among those sharing conservative outlooks for the crucial holiday quarter. Bank of America's consumer team analysis published on Monday revealed a trend of lighter-than-expected earnings forecasts among retailers, with 86 percent of 43 surveyed retailers falling short of expectations.
Newsweek has reached out to Walmart and Best Buy via email for comment.
Despite the economic headwinds, Americans seem eager to embrace the tradition of post-Thanksgiving shopping. Deloitte's holiday retail survey issued earlier this month results reflect that sentiment, with 95 percent of respondents planning to shop for the holidays, up from 92 percent last year.
Additionally, average planned spending is expected to surpass pre-pandemic levels for the first time at $567 per person.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
About the writer
Aj Fabino is a Newsweek reporter based in Chicago. His focus is reporting on Economy & Finance. Aj joined Newsweek ... Read more
