(Reporting by Deborah Sophia and Gopi Babu in Bengaluru – Prepared by Mohammed for the Arabic Bulletin) Editing by Devika Simnath
Thanksgiving weekend sales in the United States hit a record high thanks to deep discounts and an online push
by aparodyoflife ·
Nov 28 (Reuters) – Deep discounts on everything from beauty products and toys to electronics over the Thanksgiving weekend encouraged American shoppers to spend about $38 billion online, pointing to a strong holiday shopping season even as… Rising economic uncertainty.
Online consumer spending jumped 7.8% during Cyber Week, or the five days from Thanksgiving through Cyber Monday, according to data from Adobe Analytics, beating initial expectations for a 5.4% rise.
In the run-up to the crucial shopping season, industry experts including Deloitte and retailers such as Walmart (WMT.N) and Macy’s (MN) have warned of cautious consumer spending due to steady inflation constraining budgets. But the huge deals helped spread Eid joy among deal seekers.
More than 200 million shoppers made in-store and online purchases over the Thanksgiving weekend, representing a nearly 2% increase from last year and exceeding the trade association’s estimate of 182 million, the National Retail Federation (NRF) said Tuesday.
However, with about half of Americans’ holiday shopping left untapped, the NRF stuck to its forecast for retail sales growth of 3% to 4% over the full holiday season from November to December, saying consumers will continue to look for promotions and big deals.
Consumers spent an average of $321.41 on holiday-related purchases including toys, electronics and gift cards over Thanksgiving weekend, compared with $325.44 last year, NRF data showed.
Huge discounts of up to 31% on electronics and 27% on toys and the ease of making last-minute purchases from the comfort of their homes have given online sales an edge over in-store shopping.
The number of online shoppers rose 3.1% to 134.2 million over the Thanksgiving weekend, offsetting a slight decline in the number of customers who visited brick-and-mortar stores. The period saw about 121.4 million in-store shoppers, down from 122.7 million in 2022, according to the Retail Authority.
“Buy now, pay later” leads to increased online spending
In a bid to stretch Christmas budgets, shoppers are also relying on buy now, pay later (BNPL) services such as Klarna or Affirm to avoid the extra fees and interest that come with credit card payments.
A record $940 million worth of purchases were made through BNPL on Cyber Monday, up 42.5% from a year ago and beating Adobe’s previous estimate of an 18.8% jump, as consumers took advantage of the flexible payment option.
Payments company Block (SQ.N) noted that BNPL transactions through Afterpay rose 19% over the weekend, adding that online shopping cart sizes were 3.9 times larger than in-person shopping.
Klarna also said it saw a 29% increase in orders from US shoppers on Black Friday.
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