U.S. Shoppers Enticed by Deep Discounts Online

Nov 28 (Reuters) – Beauty products, toys, and electronics were all heavily discounted, enticing U.S. shoppers to spend around $38 billion online over the Thanksgiving weekend. This surge in online consumer spending has signaled a strong holiday shopping season despite economic uncertainty.

According to data from Adobe Analytics, online spending during Cyber Week, which includes the five days from Thanksgiving through Cyber Monday, increased by 7.8%, surpassing initial expectations of a 5.4% rise.

Retailers and industry forecasters, including Walmart and Macy’s, warned of cautious consumer spending due to budget constraints, but the availability of blockbuster deals helped encourage bargain-hunters.

Many forecasters were pleasantly surprised by the increase in online shopping activity. “I don’t think we’re seeing great sales numbers, but I think expectations were sufficiently beaten down that this was sort of expected, if not a little bit better,” said AllianceBernstein Chief Investment Officer Jim Tierney.

The National Retail Federation (NRF) reported that more than 200 million shoppers made purchases both in-store and online during the Thanksgiving weekend, representing a near 2% increase from the previous year, with more individuals being price conscious.

The NRF stuck to its forecast of 3%-4% retail sales growth during the full November-December holiday season, adding that shoppers will continue to look for big promotions and bargains.

U.S. consumers spent an average of $321.41 on holiday-related purchases during the Thanksgiving weekend, according to NRF data, down from last year’s $325.44, reflecting a different spending pattern than usual. “There’s going to be a shot, a consumer that’s going to chase value to the end of the shopping season,” said Tanger CEO Stephen Yalof.

The Thanksgiving weekend also saw a growth in online shoppers, with a 3.1% rise to 134.2 million individuals, making up for a slight dip in the number of in-store customers. “To a degree, that benefits Amazon, given that we’re not seeing shopping just on one big day anymore,” said Jim Tierney.

According to Salesforce, U.S. shoppers spent about $70.8 billion online over the Thanksgiving weekend, up 4.1% from the previous year. A significant factor driving this increase in online spending is “Buy Now, Pay Later” (BNPL) services, which allows consumers to stretch their budgets without incurring additional fees and interest.

Shoppers are also looking for alternative ways to make their Christmas experience smoother. According to Payments firm Block, BNPL transactions through Afterpay surged 19% over the weekend, with online shopping cart sizes being 3.9 times bigger than in-person shopping.

Online retailers are continuing to adjust to consumer shopping habits and preferences. Klarna reported a 29% increase in orders placed by U.S. shoppers on Black Friday.

This surge in online spending and unique purchasing patterns indicate that U.S. shoppers are favoring online retailers, taking advantage of big promotions and the ease of last-minute shopping, while also exploring alternative payment options for the holiday season.

Reporting by Deborah Sophia, Juby Babu, and Ananya Mariam Rajesh in Bengaluru and Kate Masters and Amina Niasse in New York; Editing by Devika Syamnath and Aurora Ellis

Our Standards: The Thomson Reuters Trust Principles.

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