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Key Takeaways
- Many Americans have been holiday shopping for weeks and will make final decisions tonight as Cyber Monday specials come to an end.
- Total retail spending is on track to surpass last year’s numbers, but people are buying fewer items as prices rise.
It’s last call to finalize your haul.
Cyber Monday spending may peak from 8 p.m. to 10 p.m. today as Americans make decisions before sales end and collectively spend some $16 million per minute, Adobe said. Online shoppers will have spent $14.2 billion by the day’s end or about 6% more than last year, the software company estimates.
Retail spending over the holiday weekend exceeded Adobe’s estimates, and other analysts also believe consumer spending appears strong. They’ve had more time to analyze the situation: many Americans started holiday shopping early this year and were scouring for sales ahead of Black Friday, said Vivek Pandya, lead analyst at Adobe Digital Insights.
“Consumers now expect comparable deals to happen earlier during Cyber Week and many are not waiting to hit the buy button,” Pandya said in a statement. “Cyber Monday has essentially become ‘last call’ for big discounts during the holiday season.”
Americans are spending more money on fewer items, potentially because they’re “trading up,” Adobe said. But inflation and tariffs may also be a factor. Promotions were similar or less generous than last year at more than 70% of the retail companies tracked by J.P.Morgan, analysts said Monday.
Why This News Matters to Consumers
Retailers and merchants are generally offering similar or less significant discounts than they did last year, analysts said. While you may be able to save, be careful that you don’t feel pressure to act now because of a promotion that’s less advantageous than it seems.
Online shoppers tended to check out with fewer items and order volume fell 1% year-over-year on Black Friday, while average prices increased 7%, said Salesforce, a software company. Through the weekend and early Monday, order volume rose 1% year-over-year, but prices were up 5%, according to Salesforce.
“On the surface, sales were strong,” said Caila Schwartz, director of consumer insights at Salesforce, but “shoppers continued to feel the bite of inflation.”
Athletic clothing and shoes, luxury apparel, luggage sets, smart watches and toys, such as Pokémon cards, stuffed animals and mystery blind box items, were popular purchases, the analysts said.
Holiday spending may surpass $1 trillion for the first time, according to the National Retail Federation, and a chillier winter forecast may help. But much of the growth may come from wealthy Americans, while others try to limit their spending.
Cooler temperatures through December may be “a positive for store traffic and basket trends, particularly following a relatively warm initial start to Fall/Winter,” J.P.Morgan said.
