Cyber Monday/ online shopping/ holiday sales/ Black Friday recap/ retail trends/ WASHINGTON/ Newslooks/ J. Mansour/ Morning Edition/ Cyber Monday 2024 is poised to set a record with an expected $13.2 billion in online sales, marking a 6.1% increase from last year. Retailers have extended their deals over multiple days, while consumers navigate higher prices and turn to “buy now, pay later” options. Strong early holiday sales signal resilience in consumer spending despite economic pressures.
Cyber Monday 2024: Quick Looks
- Record Spending: Cyber Monday online sales are projected to hit $13.2 billion, peaking at $15.7 million per minute.
- Retailer Strategies: Retail giants like Amazon, Target, and Walmart launched extended Cyber Monday sales over the weekend.
- Black Friday Success: U.S. online sales for Black Friday hit $10.8 billion, up 10.2% from last year.
- Economic Challenges: Inflation, rising credit card debt, and “buy now, pay later” plans shape shopping trends.
- Top Categories: Toys, electronics, beauty, and fitness products dominate holiday spending.
Cyber Monday 2024: Shoppers Set to Break Online Spending Records
Deep Look
Cyber Monday’s Evolution
First coined in 2005, Cyber Monday has grown into the year’s biggest online shopping day, fueled by deals and retailer hype. Adobe Analytics predicts a record-breaking $13.2 billion in sales this year, with spending expected to peak between 8 p.m. and 10 p.m. EST at an astonishing $15.7 million per minute.
Retailers have extended their Cyber Monday sales events, capitalizing on heightened consumer interest. Amazon began its discounts early Saturday morning, while Target and Walmart rolled out promotions Sunday evening, reflecting a shift toward multi-day strategies.
Strong Holiday Sales Despite Economic Pressures
Holiday sales remain robust, even as U.S. consumers face elevated prices from post-pandemic inflation and mounting credit card debt. Many shoppers are relying on “buy now, pay later” plans to spread out payments for gifts, home goods, and self-care items.
While spending growth is projected to slow compared to previous years, the National Retail Federation (NRF) expects total holiday spending to rise 2.5% to 3.5% this year. Economic uncertainty, including President-elect Donald Trump’s proposed tariffs on foreign goods, could affect prices and consumer sentiment in 2025.
Black Friday Sets the Stage
Black Friday online sales reached $10.8 billion, a 10.2% increase over 2023, according to Adobe Analytics. Other data sources highlight even larger figures, with Salesforce estimating $17.5 billion in U.S. online sales and $74.4 billion globally. Shopify reported $5 billion in worldwide sales, with a peak of $4.6 million per minute.
Mastercard SpendingPulse revealed an overall 3.4% increase in Black Friday sales (excluding automotive), driven primarily by online purchases. In-store sales, however, saw modest growth of 0.7%, as foot traffic declined.
Shifting Consumer Preferences
While physical items like toys, electronics, and home goods remain popular, a growing trend toward “experience-driven spending” is shaping holiday shopping. Shoppers are also gravitating toward higher-ticket items, upgrading to premium versions of products such as appliances and sporting goods.
Experts note a rise in “self-gifting,” with consumers indulging in self-care and luxury purchases alongside traditional gifts. Categories like skincare, fitness trackers, and espresso machines are driving sales during the holiday season.
Challenges for Brick-and-Mortar Stores
Data from RetailNext and Sensormatic Solutions shows a decline in Black Friday foot traffic, with drops of 3.2% and 8.2% compared to 2023. Extended promotional periods likely spread consumer activity over multiple days, softening the impact of in-store traffic on the actual day.
“Some of the extended Black Friday promotions really ended up leading to a little bit of a softer day-of traffic than expected,” said Grant Gustafson of Sensormatic Solutions.
Cyber Week Outlook
Cyber Monday caps off “Cyber Week,” which includes the five major shopping days from Thanksgiving to Cyber Monday. Analysts predict total online spending for the week will surpass $40 billion, reflecting robust consumer engagement despite economic headwinds.
With discounts exceeding expectations, retailers are optimistic about finishing the year strong. However, sustained inflation and potential tariff increases could impact pricing and shopping behaviors moving into 2025.
What’s Next?
- Economic Impact: Watch for government holiday sales data to gauge consumer spending patterns.
- Retail Strategies: Extended promotions may continue to spread out shopping activity in future seasons.
- Consumer Trends: Increasing reliance on “buy now, pay later” and self-gifting could shape 2025 forecasts.
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