Holiday Shopping Season Sees Record Online Spending Amid Economic Concerns
U.S. consumers achieved record online spending on Black Friday and Thanksgiving, with Cyber Monday poised for $14.2 billion, despite economic uncertainty and higher price expectations.
Black Friday and Thanksgiving online shopping hit record highs
Washington Examiner
Overview
- U.S. consumers spent a record $11.8 billion online on Black Friday and $6.4 billion on Thanksgiving Day, exceeding initial predictions for the holiday shopping kickoff.
- Cyber Monday is projected to be the season's top online shopping day, with an estimated $14.2 billion in sales, breaking previous spending records.
- Despite dour economic views and three-quarters of shoppers bracing for higher prices, consumer spending remains robust, with high-income consumers planning to increase holiday spending.
- Significant discounts, reaching up to 30% on electronics and 26% on apparel, are driving purchases and are expected to continue through Cyber Monday.
- The National Retail Federation forecasts over $1 trillion in U.S. holiday spending for November-December, significantly boosted by an estimated $20.2 billion from buy now, pay later loans.
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Analysis
Center-leaning sources frame this story by highlighting the paradox of record holiday spending occurring amidst significant economic uncertainty. They consistently juxtapose high sales figures with underlying concerns like inflation-driven growth, reduced purchasing volume, and consumer reliance on credit, suggesting a more nuanced and less optimistic economic picture.
"Despite record holiday sales, however, other signs suggest consumers are getting a smaller bang for their buck because of rising inflation and stingier seasonal discounts."
CBS News"Experts expect consumers to drive record Cyber Monday spending this year, even amid wider economic uncertainty."
ABC News"Experts expect consumers to drive record Cyber Monday spending this year, even amid wider economic uncertainty."
Associated PressArticles (7)
FAQ
Record online spending was driven by significant discounts on electronics and apparel, robust high-income consumer spending despite economic uncertainty, and the convenience of buy now, pay later loans.
Cyber Monday spending is projected to reach $14.2 billion in 2025, breaking previous online spending records for that day.
The National Retail Federation forecasts over $1 trillion in U.S. holiday spending for November-December 2025, a new milestone, with growth expected to be between 3.7% and 4.2% year over year.
Despite economic uncertainty and expectations of higher prices, consumer spending remains strong, with inflation driving nominal sales growth but real item purchases rising modestly; some shoppers rely more on buy now, pay later loans to manage costs.
Buy now, pay later loans are expected to contribute about $20.2 billion in online spending during the holiday season, an increase of 11% from last year, supporting consumer purchases amid financial concerns.
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