The Black Friday and Cyber Weekend results underscore the continued shift towards online shopping, with record-breaking online spending reaching $9.8 billion on Black Friday and $10.3 billion during Cyber Weekend in the U.S. E-commerce-focused retailers like Etsy, Wayfair, Amazon, and Shopify experienced stock surges as investors celebrated the robust sales performance. Notably, the growth of buy-now-pay-later services, such as Affirm, Klarna, and Afterpay, contributed to online spend, reaching $5.9 billion between November 1 and November 23.
This trend highlights consumers’ preference for convenient and flexible payment options, allowing them to manage their budgets during the holiday season. Budget-conscious shoppers have turned to buy-now-pay-later services to stretch their wallets, contributing to the surge in online spending.
While new entrants like TikTok and the Chinese online marketplace Temu sought to capitalize on holiday demand with their promotions, traditional e-commerce players demonstrated their resilience. Cyber Monday is anticipated to set a new record, with sales expected to reach up to $12.4 billion, solidifying its position as the biggest U.S. online shopping day of the year.
As the holiday shopping season unfolds, the National Retail Federation’s projection of a 3% to 4% year-over-year increase in sales for November and December will be closely monitored. Despite inflation and budget constraints for some consumers, the strong online performance during the initial holiday period signals positive momentum for the retail sector.
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