EYE on RETAIL: Strong holiday e-spending
The numbers are in.
The 2023 holiday season (from Nov. 1 through Dec. 31) saw consumers spend $222.1 billion online, according to Adobe Analytics data. That figure is up 4.9 percent from a year ago.
"In an uncertain demand environment, retailers leaned on discounting and flexible payment methods to entice shoppers this holiday season,” said Vivek Pandya, lead analyst, Adobe Digital Insights. “The strategy was effective, driving record spend online during big days like Cyber Monday and Black Friday, and a record 11 days that surpassed $4 billion in daily spend this season.”
A total of $123.5 billion was spent online in the month of November (up 6% YoY), bolstered by a strong Cyber Week—the five days between Thanksgiving and Cyber Monday—which drove $38 billion in spend online (up 7.8% YoY).
Across major e-commerce categories, discounts hit record highs this holiday season. Shoppers found great deals in electronics, where discounts peaked at 31% off listed price (vs 25% in 2022), as well as toys at 28% (vs 34%) and apparel at 24% (vs. 19%).
Discounts were strong across other categories including computers at 24% (vs 20%), televisions at 23% (vs 17%), appliances at 18% (vs 16%), sporting goods at 18% (vs 10%) and furniture at 21% (vs 8%).
While consumers showed a strong appetite to shop online, many are giving themselves greater flexibility with their budgets. This holiday season, ‘Buy Now, Pay Later’ (BNPL) usage hit an all-time high, contributing $16.6 billion in online spend, up a significant 14% YoY and representing $2.1 billion more than the last holiday season.
Of the $222.1 billion spent online this holiday season, over half (65%) was driven by five categories including electronics ($50.8 billion), apparel ($41.5 billion), furniture ($27.3 billion), groceries ($19.1 billion) and toys ($7.7 billion). These categories have become key growth drivers in the digital economy.
Hot sellers by category included:
• electronics: TVs, smart speakers, tablets, Bluetooth headphones and smart watches;
• apparel: pajamas, sneakers and cold weather clothing (fleeces, sweatshirts, base layers);
• furniture and home: Barstools, throw pillows and Christmas décor; and
• toys: Barbie products, Disney Little People, Uno Show No Mercy, KidKraft Playsets and Squishmallows.
• video games: Super Mario Bros. Wonder, Spiderman 2 and Call of Duty: Modern Warfare III were hot sellers, and the Nintendo Switch, PlayStation 5 and Xbox Series X were top gaming consoles.
Other hot sellers this season included cordless and robot vacuums and small kitchen appliances (coffee makers, air fryers, instant pots).
This holiday season, mobile hit a new milestone with 51.1% of online sales coming through smartphones (up from 47% in 2022). Mobile shopping was highest on Christmas Day (Dec. 25) driving 63% of online sales (61% in 2022). It was the first time for mobile shopping to surpass desktop shopping.
Curbside pickup was used in 18.4% of online orders this holiday season, for retailers that offer the service (21% in 2022). Now with roughly one in every five orders online utilizing curbside pickup, consumers have shown that this fulfillment method continues to provide value, especially for shoppers who value the speed and convenience.