Cyber Monday Sales Set Record, But Gains Are Driven by Discounts

Cyber Monday sales set a record, but the gains were driven by discounting, according to analysts. Adobe Analytics said US e-commerce shoppers spent $11.3 billion on Cyber Monday, an increase of 5.8% from a year ago. Wellness and beauty were among the winning categories. 

“With oversupply and a softening consumer spending environment, retailers made the right call this season to drive demand through heavy discounting,” said Vivek Pandya, lead analyst at Adobe Digital Insights. “It spurred online spending to levels that were higher than expected, and reinforced e-commerce as a major channel to drive volume and capture consumer interest.” 

That interest comes as the US economy has been plagued by supply chain woes in the first half of the year, and fears of recession in the second half of 2022.

Still, holidays are about the kids and toys were the big winner on Monday. Sales soared 684% compared to an average day in October, according to Adobe. Similar gains were recorded for electronics (+391%), books (+439%) and jewelry (+410%). 

From Thanksgiving through Cyber Monday, U.S. shoppers spent $35.3 billion online, a 4% increase, Adobe said. 

Shopify Inc. manages the e-commerce infrastructure of millions of independent businesses globally. From Black Friday to Cyber Monday, the platform processed $7.5 billion in sales, a 19% ncrease. Top performing categories included health and beauty  and home and garden. Shoppers in London, New York and Los Angeles were the most active buyers, according to Shopify

But consumers weren't online all the time. The National Retail Federation said a record 196.7 million Americans shopped stores and online during the five-day Thanksgiving to Cyber Monday period, which is inline with expectations of a 6-8% increase in sales for the holiday season. The NRF predicts total sales of between $942.6 billion and $960.4 billion for the holiday season, which is defined as the November 1 to December 31 period.

The NRF, in conjunction with Prosper Insights & Analytics, on Tuesday released findings from a survey of 3,326 adults indicating US consumers spent an average of $325.44 on holiday-related purchases over the five-day stretch, up from $301.27 in 2021. Of that amount, $229.21 was specifically spent on gifts.

The gains came even as consumer concerns rose. The Conference Board’s November reading of its Consumer Confidence Index slid to 100.2 on Tuesday, down from 102.2 in October.