Thanksgiving Thursday marked the unofficial beginning of the holiday shopping season in the United States, with consumers flocking to online retailers in search of deals. However, despite the expectations of significant growth, the data shows that consumer spending remained steady, without any major booms.
Key Takeaway
Thanksgiving online sales in the US reached $5.6 billion, an increase of 5.5% from last year, according to Adobe Analytics. Globally, online sales totaled $31.7 billion, with mobile devices driving a record-breaking $3.3 billion in sales. Despite the modest increase, online retailers face another challenging year, with predictions of only a 5.4% growth in total online spend for the holiday season.
Americans Spend $5.6 Billion Online on Thanksgiving
According to Adobe Analytics, online sales in the US on Thanksgiving reached a total of $5.6 billion. This represents a modest 5.5% increase compared to the previous year. Similarly, Salesforce’s figures indicate that global online sales amounted to $31.7 billion, with the US contributing $7.5 billion. However, both figures only show a 1% increase.
The average order value was also relatively modest. Globally, average orders rose by just 2% to $103 per “basket,” while in the US, they increased by only 1% to $119.
Mobile Devices Drive Record-Breaking Sales
One standout trend was the remarkable performance of mobile devices. Adobe reported that consumers spent a record-breaking $3.3 billion over mobile devices on Thanksgiving, marking a 14% increase compared to previous years.
Salesforce also noted an overall increase in online traffic to e-commerce sites, with a global rise of 4% and a US increase of 6%.
Achallenging Year Ahead for Online Retailers
The Thanksgiving sales figures serve as a bellwether for the upcoming holiday period, which traditionally represents the biggest period for retail sales throughout the year. However, the flat sales numbers indicate yet another tough year for online retailers.
Adobe Analytics predicts that the total online spend for the full five-day period will reach $37.2 billion, representing a modest 5.4% increase compared to the previous year. Additionally, Black Friday is expected to generate $9.6 billion in sales, up by approximately 5.7%. These figures, while showing growth, are significantly lower than the years prior to the COVID-19 pandemic.
Discounts Drive Spending, Margins May Be Impacted
Adobe suggests that the current spending trends are influenced by retailers offering more discounts to encourage consumer buying. This raises questions about the impact these discounts may have on retailers’ margins.
“Cyber Week is off to a strong start with Thanksgiving driving a record $5.6 billion in online spend,” commented Vivek Pandya, lead analyst at Adobe Digital Insights. He also noted the growing importance of mobile devices in e-commerce and the increasing number of shoppers using smartphones to find the best deals.
These figures, gathered from a wide range of sources, highlight the ongoing growth and impact of online sales. As consumers continue to seek convenience and competitive deals, the importance of mobile devices in e-commerce becomes increasingly evident. The coming days, including Black Friday, will provide further insights into consumer spending patterns and the overall success of the holiday shopping season.
