Wednesday, December 4, 2024

Holiday Shopping Frenzy: Record Sales, Steep Discounts, and the Slowest Growth in Six Years

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U.S. online shopping is heating up this holiday season, with consumers flocking to steep discounts and mobile-first deals. Adobe Analytics projects a staggering $240.8 billion in online sales between November 1 and December 31an 8.4% jump over last year. The big game-changer? Mobile revenue is expected to surpass desktop for the first time, making up 53.2% of sales. Retailers like Walmart (NYSE:WMT) and Amazon (NASDAQ:AMZN) are leading the charge, pulling out all the stops with aggressive discounts and promotions designed to grab the attention of cost-conscious shoppers navigating rising inflation and interest rates.

Thanksgiving weekend is shaping up to be the battlefield for retail dominance. Adobe forecasts the deepest discounts of the year during this “Cyber 5” window, particularly on Thanksgiving Day, where shoppers will snag toys, sporting goods, and appliances at record-low prices. Meanwhile, Buy Now, Pay Later (BNPL) options are making it easier for consumers to stretch their dollarsholiday BNPL spending is set to hit $18.5 billion, up 11.4% from last year. The message from shoppers is loud and clear: flexibility and savings are king this season.

The stakes are high, and retailers know it. From Abercrombie & Fitch (NYSE:ANF) raising forecasts on booming apparel. However, Best Buy (NYSE:BBY) has lowered its annual profit and sales forecasts due to weaker-than-expected demand for electronics. But with the season’s slowest growth rate in six years on the horizon, it’s a mixed bag for investors watching the retail sector. The question isn’t whether consumers will spendit’s which players will capture the lion’s share of their wallets.

This article first appeared on GuruFocus.

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