U.S. online holiday retail sales projected to surpass $240.8 billion: Adobe Analytics predictions
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The holiday shopping season of 2021 is expected to see a surge in online sales, with consumers making purchases earlier due to a stream of discounts, according to Adobe Analytics.
Adobe Analytics predicts that U.S. online retail sales during the holiday season (Nov. 1 - Dec. 31) will reach an estimated $240.8 billion, marking an 8.4% increase over last year's sales. This prediction is based on the report by Adobe Analytics.
Last year, U.S. consumers spent around $210 billion online during the holiday season, which was a 3.5% increase from 2020. Given this growth rate, an estimated total of roughly $203 billion in online sales for the entire 2021 holiday season can be derived.
Black Friday 2021 online sales amounted to approximately $8.92 billion, as reported by Adobe Analytics.
Cyber Week (Thanksgiving through Cyber Monday) is projected to drive $40.6 billion in online sales, representing a 7% increase from last year. The report by Adobe Analytics predicts a 7% increase in online sales during Cyber Week compared to last year.
Cyber Monday is expected to be the biggest shopping day of the year, with $13.2 billion in online sales.
Several retailers, including Amazon, Walmart, and Target, have announced holiday sales events beginning in October.
Shoppers are adjusting to inflation and other economic concerns by shopping earlier and mining for discounts. Certain consumers are trading up to goods that were previously higher-priced due to the discounting patterns during the holiday season. Retailers are expected to offer discounts of up to 30% off on categories like electronics and toys.
The use of Buy Now, Pay Later (BNPL) is a significant factor in the growth of U.S. retailers, according to Adobe. Adobe reports that 22% of consumers use BNPL to free up cash, and 19% use it to purchase something they couldn't otherwise afford.
This year, mobile device purchases are expected to eclipse purchases made on computers, representing 53.2% of all online shopping. Purchases on mobile devices are projected to reach $128.1 billion, a 12.8% year-over-year increase.
In addition, buy now, pay later is expected to increase by 11.4% during the holidays, reaching a record $18.5 billion in online spending. Sporting goods are expected to have discounts of 20%, while TVs are predicted to have discounts of 24%.
The holiday shopping season is reshaped by consumers making purchases earlier due to a stream of discounts, with mobile device purchases expected to dominate the landscape.
- Businesses are adjusting their strategies to accommodate early holiday shopping, as inflation and economic concerns drive consumers to seek discounts earlier in the season.
- The integration of AI-powered systems in retail may contribute to the surge in online sales by providing smarter discounts and personalized shopping experiences.
- With mobile device purchases expected to dominate online shopping this holiday season, lifestyle trends and technology use are becoming crucial factors for retailers to consider in marketing strategies.
- Finance experts anticipate an increased use of Buy Now, Pay Later (BNPL) services during the 2021 holiday season, as 22% of consumers utilize it to free up cash and 19% use it for purchasing items they couldn't otherwise afford.
