US consumers defied economic concerns by engaging in a significant online shopping spree over the Thanksgiving holiday weekend. Online spending from Thanksgiving Day to Cyber Monday reached $23.6 billion, surpassing analyst projections and signalling a strong start to the holiday shopping season. Adobe Analytics reported that Cyber Monday online spending reached $9.1 billion by mid-afternoon, up 4.5% from the previous year. Projections anticipated a total spend of between $13.9 billion and $14.2 billion for Cyber Monday alone, potentially bringing the five-day online shopping total to $43.7 billion.
Despite mixed expectations due to weak consumer confidence and inflation, substantial discounts and the availability of short-term credit options drove sales. Black Friday online spending hit a record $11.8 billion, according to Adobe, which tracks shopper traffic to online retail websites.
However, signs of caution emerged, with Kantar analysts observing fewer impulse purchases and clearer discount messaging at major retailers like Walmart and Target. This suggests consumers were more vigilant about potential Black Friday deal deceptions. Retailers, including Amazon, offered more discounts on higher-priced items, indicating growing price sensitivity even among wealthier consumers.
Buy-now-pay-later (BNPL) services like Affirm, a financial technology company that provides point-of-sale loans to consumers, and Klarna gained popularity, particularly among younger, lower-income shoppers. CivicScience data revealed that 38% of respondents used BNPL for at least one Black Friday weekend purchase. Adobe’s data showed a 9% increase in Black Friday BNPL usage compared to last year, with Cyber Monday expected to surpass $1 billion, a 5% year-on-year increase. Consumers also actively used chatbots and AI tools to compare prices and secure discounts.
