According to Adobe Analytics, online holiday sales rose by 3.5% year over year to $211.7 billion as compared to their earlier forecast of $209.7 billion. Discounts hit a record high during the season and persuaded deal-hungry shoppers to expend. Vivek Pandya, lead analyst at Adobe Digital Insights, said on cnbc.com that the situation is exactly opposite from the last year. Customers were willing to pay more in 2021 for holiday purchases as retailers ran low on products. Now, he said, shoppers have become more frugal and will hold out for a lower price.
According to Salesforce (NYSE: CRM), retailers offering ‘buy online pick up in store’ (BOPIS) through December 15-24 sold 7 times more than those who didn't during this period and social media referrals hit an all-time high. It reported a global online sales hitting $1.14T with a 63% spike in returns year over year with retailers leaning into demand and increasing their discounts to 21% between Thanksgiving and Christmas.
According to insights from JP Morgan Research, Black Friday and Cyber Monday sales in 2022 were up 11% and 9% from 2021, respectively. Online sales processed by J.P. Morgan over the Black Friday to Cyber Monday period climbed 6.5% from 2021, with the number of transactions increasing 4.1%. Consumers also flocked to the high street to enjoy the in-store shopping experience this year, driving double-digit increases compared with 2021. Cumulatively, Black Friday and Cyber Monday sales were up 16.8% from last year and transactions rose 14.2% over the same period. Consumer confidence in the U.K. has plummeted as shoppers grapple with the worst cost-of-living crisis in a generation. In a recent J.P. Morgan consumer survey (conducted at the end of November 2022), 48% of U.K. shoppers said they felt uncomfortable about their finances heading into the festive season.
Retailers are bracing for a tougher year ahead, as inflation weighs on wallets. The latest holiday numbers come as retailers brace for a tougher year and see signs that some consumers may be running out of gas. As inflation remains high, Americans are running up credit card balances and socking away less money in savings accounts. Sales of some big-ticket items, such as jewelry and consumer electronics, have declined. And retailers have marked down merchandise and scaled back orders to clear through excess inventory and prepare for a potential recession.
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