{"id":19386,"date":"2022-11-28T20:03:50","date_gmt":"2022-11-28T20:03:50","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/11\/28\/cyber-monday-deals-lure-in-consumers-amid-high-inflation\/"},"modified":"2022-11-28T20:03:50","modified_gmt":"2022-11-28T20:03:50","slug":"cyber-monday-deals-lure-in-consumers-amid-high-inflation","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/11\/28\/cyber-monday-deals-lure-in-consumers-amid-high-inflation\/","title":{"rendered":"Cyber Monday deals lure in consumers amid high inflation"},"content":{"rendered":"

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NEW YORK — <\/span>Days after flocking to stores on Black Friday<\/a>, consumers are turning online for Cyber Monday to score more discounts on gifts and other items that have ballooned in price because of high inflation.<\/p>\n

Cyber Monday is expected to remain the year\u2019s biggest online shopping day and rake in up to $11.6 billion in sales, according to Adobe Analytics, which tracks transactions at over 85 of the top 100 U.S. online stores. That forecast represents a jump from the $10.7 billion consumers spent last year.<\/p>\n

Adobe\u2019s numbers are not adjusted for inflation, but the company says demand is growing even when inflation is factored in. Some analysts have said top line numbers will be boosted by higher prices and the amount of items consumers purchase could remain unchanged \u2014 or even fall \u2014 compared to prior years. Profit margins are also expected to be tight for retailers offering deeper discounts to attract budget-conscious consumers and clear out their bloated inventories.<\/p>\n

Shoppers spent a record $9.12 billion online on Black Friday, up 2.3% from last year, according to Adobe. E-commerce activity continued to be strong over the weekend, with $9.55 billion in online sales. <\/p>\n

Salesforce, which also tracks spending, said their estimates showed online sales in the U.S. hit $15 billion on Friday and $17.2 billion over the weekend, with an average discount rate of 30% on products. Electronics, active wear, toys and health and beauty items were among those that provided a big boost, the two groups said. <\/p>\n

Meanwhile, consumers who feared leaving their homes and embraced e-commerce during the pandemic are heading back to physical stores in greater numbers this year as normalcy returns. The National Retail Federation said its recent survey showed a 3% uptick in the number of Black Friday shoppers planning to go to stores. It expects 63.9 million consumers to shop online during Cyber Monday, compared to 77 million last year. <\/p>\n

CONSUMERS ARE SPENDING CAUTIOUSLY<\/p>\n

Mastercard SpendingPulse, which tracks spending across all types of payments including cash and credit card, said that overall sales on Black Friday rose 12% from the year-ago. Sales at physical stores rose 12%, while online sales were up 14%.<\/p>\n

RetailNext, which captures sales and traffic via sensors, reported that store traffic rose 7% on Black Friday, while sales at physical stores improved 0.1% from a year ago. However, spending per customer dropped nearly 7% as cautious shoppers did more browsing than buying. Another company that tracks store traffic \u2014 Sensormatic Solutions\u2014 said store traffic was up 2.9% on Black Friday compared to a year ago.<\/p>\n

\u201cShoppers are being more thoughtful, but they are going to more than a few retailers to be able to make a determination of what they are going to buy this year,\u201d said Brian Field, Sensormatic\u2019s global leader of retail consulting and analytics.<\/p>\n

Overall, online spending has remained resilient in the past few weeks as eager shoppers buy more items on credit and embrace \u201cbuy now, pay later\u201d services that lack interest charges but carry late fees.<\/p>\n

In the first three weeks of November, online sales were essentially flat compared with last year, according to Adobe. It said the modest uptick shows consumers have a strong appetite for holiday shopping amid uncertainty about the economy.<\/p>\n

Still, some major retailers are feeling a shift. Target, Macy\u2019s and Kohl\u2019s said this month they\u2019ve seen a slowdown in consumer spending in the past few weeks. The exception was Walmart, which reported higher sales in its third quarter and raised its earnings outlook.<\/p>\n

\u201cWe\u2019re seeing that inflation is starting to really hit the wallet and that consumers are starting to amass more debt at this point,\u201d said Guru Hariharan, founder and CEO of retail e-commerce management firm CommerceIQ, adding there\u2019s more pressure on consumers to purchase cheaper alternatives.<\/p>\n

SHIFTING DEMAND<\/p>\n

This year\u2019s Cyber Monday also comes amid a wider e-commerce slowdown affecting online retailers that saw a boom in sales during most of the COVID-19 pandemic. Amazon, for example, raked in record revenue but much of the demand has waned as the worst of the pandemic eased and consumers felt more comfortable shopping in stores.<\/p>\n

To deal with the change, the company has been scaling back its warehouse expansion plans and is cutting costs by axing some of its projects. It\u2019s also following in the steps of other tech companies and implementing mass layoffs in its corporate ranks. Amazon CEO Andy Jassy said the company will continue to cut jobs until early next year.<\/p>\n

Shopify, a company which helps businesses set up e-commerce websites and also offers offline software, laid off 10% of its staff this summer. <\/p>\n

The company said Monday that its merchants have surpassed $5.1 billion in global sales since the start of Black Friday in New Zealand. And spending per U.S. customer went up $5 compared to last year, said Shopify President Harley Finkelstein. <\/p>\n

Despite the bump, Finkelstein said shoppers were more intentional about their spending this year and waiting for discounts before making a purchase.<\/p>\n<\/div>\n