According to new data from Adobe Analytics, deep discounts are fueling a strong start to holiday online spending. With inflation and economic uncertainty looming, consumers are cutting back, which is beneficial for companies that offer bargains. Online shoppers spent $63.2 billion in the first 20 days of November, marking a 5% year-over-year increase and surpassing Adobe’s full-season forecast of 4.8% growth.
The month of November also set a new record for online consumer spending, with 17 days raking in $3 billion in single-day sales, compared to 13 days in 2022. Adobe projects total holiday season spending for the months of November and December to reach $221.8 billion, up from $210 billion last year and $205 billion in 2021.
While online sales look promising, some retailers and research notes have offered less optimistic holiday spending forecasts. However, Adobe emphasizes a positive outlook for discount-focused companies like TJX Companies and Amazon.
Online sales for apparel were up 22% this month compared to average daily sales in October, with an average discount of 21% on listed online prices. This is good news for TJX Companies, the owner of T.J. Maxx, Marshalls, and HomeGoods. Despite an emphasis on in-store shopping during last week’s earnings call, TJX expressed satisfaction with its efforts to increase e-commerce.
Meanwhile, Adobe forecasts a 5.4% increase in consumer spending during Cyber Week, with online spending on Black Friday alone seen rising 5.7% to $9.6 billion. This bodes well for e-commerce giant Amazon, which is expected to capitalize on its quick delivery, wide product selection, and plentiful deals during the holiday season. Amazon’s incremental hiring and regionalized fulfillment network are also boosting its prospects.
Ultimately, the holiday season is shaping up to be a strong one for online and brick-and-mortar retailers, with consumers prioritizing discounts and bargains. The outlook remains positive for companies like TJX Companies and Amazon as they gear up for the busy shopping season.
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