Thanksgiving in the United States on Thursday marked the commencement of the holiday shopping season, with consumers and online retailers engaging in a digital commerce dance.
Despite the anticipation, TechCrunch reported that this year's Thanksgiving sales convey a message of steadiness rather than an explosive growth surge.
LONDON, ENGLAND - NOVEMBER 24: Signs advertising Black Friday sales are seen in the Oxford Street shopping district on November 24, 2023 in London, England. Traditionally Black Friday is the Friday after Thanksgiving in the United States where Christmas shopping is launched in the store with widespread discounted goods and sales. In recent years this practice has been adopted by the UK retail trade.
Adobe: Modest Increase in 2023 US Thanksgiving Online Sales
According to Adobe Analytics, online spending in the US on Thanksgiving reached an estimated $5.6 billion, reflecting a modest increase of 5.5% compared to the previous year.
Mobile devices stand out this year, with around $3.3 billion spent on mobile devices on Thanksgiving Day, marking a substantial 14% increase and an all-time record for the day.
As the holiday shopping extravaganza unfolds, Adobe Analytics projected a total online spend of $37.2 billion over a five-day period, representing a year-on-year growth of 5.4%. This online spending is expected to account for 16.8% of the overall holiday expenditure.
Black Friday is predicted to contribute $9.6 billion to the sales tally, reflecting a similar growth rate of 5.7% compared to the figures from the previous year.
It is worth noting that last year's published figures from Adobe for Thanksgiving stood at $5.29 billion, reflecting a less than 4% increase. The 5.5% growth rate reported this year is a noticeable improvement over the 2.9% from the previous year.
However, it pales compared to pre-COVID-19 years, such as 2017, when growth rates surpassed 18%, according to TechCrunch.
Spending Surge
While inflation made its presence felt, Adobe suggested that consumer spending concerns are more influential. The spending surge is reportedly driven by increased discounts aimed at incentivizing purchases rather than shifting toward pricier products, raising questions about the impact on retailers' profit margins.
Vivek Pandya, the lead analyst at Adobe Digital Insights, noted that mobile shopping reached unprecedented levels, with consumers turning to their smartphones to secure the best deals during holiday gatherings.
These figures provide insights into consumer behavior and economic trends as the holiday shopping season kicks off with Thanksgiving, offering valuable information for retailers, analysts, and businesses assessing the health of the retail sector.
Overall, these figures suggest a steady but moderate growth in online spending during the Thanksgiving holiday period. While there is an increase in spending, it is not as substantial as the growth rates observed in pre-pandemic years.
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