Amid much speculation this year about consumer spending, US online retailers posted strong sales during the traditional start of the holiday shopping season. Brick-and-mortar stores also saw sales gains, albeit more modestly.
This is my eighth annual “sales report” for Cyber Week – Thanksgiving Day through Cyber Monday – by rates of 2021, 2020, 2019, 2018, 2017, 2016 and 2015.
According to Adobe, US online retail sales in 2022 — Not adjusted for inflation – increased over 2021 for Thanksgiving, Black Friday and Cyber Monday.
Thanksgiving
According to Adobe Analytics, American consumers spent a record $5.3 billion online on Thanksgiving Day, up 3% year-on-year, spurred by the trend of physical store closures on the day. Retailers were targeting shoppers with big discounts on toys and electronics. Mobile shopping accounted for 55% of online sales, up 8.3% year over year.
Black Friday
Adobe Analytics reported record online sales of $9.12 billion for Black Friday, up 2.3% from 2021. Analysts’ fears that consumers would cut back on spending proved unfounded. Electronics sold well, with Apple Watches and Airpods being popular along with smart speakers and TVs. Toys was a robust category – up 285% over last year, with Fortnite, Roblox, Bluey, Funko Pop! and Disney Encanto were at the top.
Shopify, the e-commerce platform of many direct-to-consumer startups, reported that its merchants made $3.4 billion in sales on Black Friday, up 21% year over year.
Mastercard SpendingPulse reported that U.S. in-store sales on Friday were up 12% year over year, while e-commerce sales were up 14%.
cyber monday
Adobe Analytics said online sales hit US$11.3 billion on US Cyber Monday, the highest ever on the day and 5.8% higher than Cyber Monday 2021 and 25% higher than this year’s online sales on Black Friday. This makes Cyber Monday the biggest online sales day in 2022.
Retailers offered deep discounts in categories like toys, computers and electronics. Cyber Monday top sellers included Pokémon cards, Legos, Hot Wheels, Disney Encanto, LOL Surprise dolls, and Cocomelon and Hatchimals toys. The top gaming consoles were PlayStation 5, Nintendo Switch and Xbox Series X.
cyber week
While many retailers began offering holiday deals in early November, consumers waited until the traditional big shopping days of Cyber Week to make purchases.
Salesforce data — which spans retail, marketing, and services — shows global online holiday sales for Cyber Week (Thanksgiving through Cyber Monday) were $281 billion (2% vs. 2021) and $68 billion dollars in the US (9% up from 2021). While many retailers offered meager discounts earlier in the month, average discount rates increased during Cyber Week.
The top discount categories globally, according to Salesforce, were general apparel, makeup and skincare, and luxury apparel and handbags.
Adobe reports that US consumers spent $35.27 billion online throughout Cyber Week – Thanksgiving through Cyber Monday – up 4% from 2021. Toys were popular throughout the period, with demand was fueled by discounts of up to 33% off recommended retail prices.
The National Retail Federation said 122.7 million U.S. consumers shopped in physical stores during Cyber Week, a 17% year-over-year increase, while 130.2 million shopped online, a 2% year-on-year increase 2021
According to Adobe, most online sales during the five days came from mobile devices for the first time – 51% in 2022 compared to 46% last year. On Thanksgiving, mobile devices accounted for 55% of sales, up from 51% in 2021. On Cyber Monday, 43% of sales came from mobile devices, up from 40% the previous year.
As in previous years, paid search was the dominant driver of online sales, accounting for 28% of all online orders during Cyber Week. Eighteen percent of orders came from consumers who went directly to retail websites. Email contributed 17% and organic search returned 15%.
Curbside pickup eased as shoppers felt safer to browse and shop in physical stores. According to Adobe, curbside pickup was used for 13% of all online Black Friday orders at retailers that offer this option, compared to 21% a year ago.
Buy now, pay later
According to Salesforce, usage of BNPL by US shoppers increased during Cyber Week, with orders up 5% from last year. However, the average order value for US BNPL transactions during the five-day period fell 5%, suggesting that consumers have funded cheaper goods this year compared to last year.
recap
None of the companies that reported sales figures have adjusted them for inflation. Sales increased in 2022, but not necessarily the quantity of goods.
Nonetheless:
- Fears that Cyber Week would disappoint have not materialized.
- Consumers were willing to spend, but not excessively.
- Shopper browsing has increased in recent years, although purchases have been modest.
- E-commerce profits have been more robust.
