Cyber Monday Spending Surges to Record $12 Billion
Cyber Monday, the biggest U.S. online shopping day, saw record-breaking spending this year, with consumers shelling out between $12 billion and $12.4 billion. This marks a significant increase from the $11.3 billion spent on Cyber Monday last year.
Adobe Digital Insights estimates that a substantial portion of this spending, around $4 billion, occurred between 6 p.m. and 11 p.m. EST, driven by last-minute shoppers eager to grab the best deals.
Retailers enticed inflation-weary shoppers with hefty discounts on a wide range of products, including cosmetics, electronics, toys, clothing, and other items. These efforts paid off, with U.S. shoppers spending $8.3 billion online as of 6 pm EST.
The rise in spending is attributed to a combination of factors, including pent-up demand from the pandemic, inflation-driven price sensitivity, and the convenience of online shopping. Analysts believe that the strong showing on Cyber Monday bodes well for the overall holiday shopping season.
However, some retailers, including Walmart, Target, and Home Depot, have expressed concerns about the sustainability of this spending momentum, citing rising interest rates and depleting household savings. They anticipate having to offer deeper discounts in the weeks ahead to keep shoppers engaged.
Despite these concerns, the overall sentiment remains positive for the holiday shopping season. Analysts predict that strong consumer demand will drive sales growth throughout the remainder of the year.