Adobe: Cyber Monday Spending Up 15% at Record $10.8 Billion

E-commerce sales on Cyber Monday (Nov. 30) set a new revenue record, topping $10.8 billion, which was up 15.1% from $9.39 billion during the previous-year period, according to new data from Adobe Analytics. The tally was below Adobe’s projected $12.7 billion estimate, which cites statistics from 80 of the top 100 online retailers.

Observers contend online spending on one-day sales events has been expanded by big-box stores throughout the year in response to Amazon Prime Days — tempering somewhat the impact of CyberMonday.

“Throughout the remainder of the holiday season, we expect to see record sales continue and curbside pickup to gain even more momentum as shoppers avoid crowds and potential shipping delays,” Taylor Schreiner, with Adobe Digital Insights, said in a video statement.

Regardless, consumers are increasingly using smartphones to conduct online purchases, with 40% of transactions on Black Friday and Thanksgiving conducted on portable devices. Adobe found that in-store and curbside pickup of online purchases increased 52% from last year.

ADI’s John Copeland said portable devices were used 60% of the time by people visiting and browsing retail websites buying assorted items such as toys and video games.

“It’s clear consumers have gotten a lot more comfortable shopping from their phones,” Copeland told CNBC, adding that top-selling items on Cyber Monday included limited availability of new game systems from Sony PlayStation and  Microsoft’s Xbox, as well as titles Call of Duty: Black Ops Cold War and Spider-Man: Miles Morales.

“If you can get them, you should grab them,” Copeland said.

He said social media is increasingly driving consumer traffic to retail websites, underscoring the power of so-called “influencers” and click advertising.

“Thanksgiving weekend through Cyber Monday, social media has driven 1-in-10 visits to retail websites,” Copeland said. “That’s 17% greater than last year. Retailers are figuring out how to leverage all the digital channels.”

Report: Winter Retail Off to Strong Start Despite Sluggish Black Friday

The 2020 winter retail season is projected to be positive despite some concerns that the traditional Black Friday retail jump-starter underperformed. New credit card data from Bank of America Merrill Lynch for a seven-day period through Nov. 21 (before Black Friday), saw a 9.1% uptick in purchases compared to the same period in 2019. Online sales through the winter holiday season are projected to increase by 31% from last year.

Bank of America contends retailers, especially big-box stores such as Walmart, Target and Best Buy, have spread out Black Friday deals and consumer incentives throughout the holiday period.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

Adobe Analytics predicts that U.S. online holiday sales will total $189 billion, shattering all previous records with a 33% increase from 2019 — equal to two years’ growth in one season. If consumers receive another round of stimulus checks and physical stores need to shut down again in large parts of the country, consumers are expected to spend an additional $11 billion online, surpassing a total of $200 billion (47% increase from 2019).

Instead of Cyber Week (Thanksgiving Day to Cyber Monday), Adobe expects November and December to turn into Cyber Months this year:

  • Online sales will surpass $2 billion every day between Nov. 1-21 and increase to $3 billion a day Nov. 22–Dec 3.
  • Black Friday is projected to generate $10 billion in online sales, a 39% increase from 2019; Cyber Monday will remain the biggest online shopping day of the year with $12.7 billion, a 35% jump YoY.
  • Americans will spend $28.1 billion more on their smartphones vs. 2019, accounting for 42% of all online sales, a 55% increase from 2019.
  • Small retailers ($10 million-$50 million annual online revenue) will see a larger boost to revenue (107% boost) vs. large retailers (84% boost).
  • Most anticipated gifts/toys: PlayStation 5, Xbox Series X, Nintendo Switch. Adobe expects 9% of all holiday customers to be net new online shoppers due to the pandemic, and conversion rates are expected to increase significantly (13%).

 

“Despite the lower-than-expected growth on Black Friday, we expect total holiday season sales could still exceed the consensus 31% growth as Black Friday is expected to generate only about 5% of total holiday season expected sales ($10 billion of $190 billion per Adobe Analytics), and retailers are offering prolonged sales, lasting the entire holiday season,” Bank of America wrote in a note. “The more spread out sales should also help alleviate fulfillment bottlenecks, spreading out capacity utilization over a longer period of time.”

Black Friday Online Sales Soar; Retail Traffic Plummets

As expected, ongoing consumer trends toward e-commerce and away from shopping malls magnified during a pandemic. New data from Adobe Analytics saw a 22% year-over-year increase in online sales on Black Friday (Nov. 27), the official start to the winter retail season.

The research firm, citing data from 80 of the top 100 online retail sites, said e-commerce revenue reached $9 billion the day after Thanksgiving, compared with $7.4 billion during the previous-year period. Adobe said it was the second-highest online revenue day since Cyber Monday 2019 when revenue reached $9.4 billion. This year’s Cyber Monday (Nov. 30) is projected to top $10.8 billion, up 15% from last year.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

Meanwhile, e-commerce’s gain was brick-and-mortar’s drain. Preliminary data from Sensormatic Solutions indicated consumer visits to retail stores on Black Friday dropped 51.2% compared with 2019. Shopper traffic also decreased 45.2% week-to-date (Sunday, Nov. 22 to Friday, Nov. 27) compared with the same period last year.

“Due to COVID-19 and social distancing requirements, shoppers were more purposeful in their in-person Black Friday shopping, causing significantly less crowds than we’ve seen in the past,” Brian Field, senior director of global retail consulting at Sensormatic Solutions, said in a statement. “This was compounded by retailers not offering as many in-store doorbusters and the increasing adoption of e-commerce.”

While many retailers limited their Black Friday hours compared to non-pandemic years, the peak time for shopping remained the same, with the busiest influx of footfall around 2 p.m., according to Sensormatic.

“As we approach ‘Super Saturday’ (Dec. 19), and corresponding shipping deadlines, we expect to see some of the in-store traffic that didn’t materialize on Black Friday appear as consumers wrap up their holiday shopping and make last-minute purchases,” Field said.

The research firm expects the 10 busiest shopping days of 2020 to account for 34.2% of all holiday traffic as compared to 46.5% in 2019. The days include:

  1. Friday, Nov. 27 — Black Friday
  2. Saturday, Dec. 19 — Super Saturday
  3. Saturday, Dec. 26 — Day after Christmas, aka “Boxing Day,” in some global regions
  4. Wednesday, Dec. 23 — Wednesday before Christmas
  5. Saturday, Dec. 12 — Second Saturday in December
  6. Monday, Dec. 21 — Monday before Christmas
  7. Saturday, Nov. 28 — Saturday after Thanksgiving
  8. Tuesday, Dec. 22 — Tuesday before Christmas
  9. Saturday, Dec. 5 — First Saturday in December
  10. Sunday, Dec. 20 — Sunday before Christmas

Video Games, Hardware Spearhead Record Online Black Friday Sales

Sales of soccer-themed video game FIFA 20 and NFL-based Madden 20 helped drive record online sales on post-Thanksgiving Black Friday (Nov. 29), according to new data from Adobe Analytics. The Nintendo Switch console ranked among the most-popular online purchases — as it has all year in the video game market.

Adobe said consumers spent $7.4 billion online, which trails only the all-time $7.9 billion spent a year ago on Cyber Monday. The software giant, which tracked the majority of Web retailers, is projecting $9.4 billion in online spending on Cyber Monday (Dec. 2) this year.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

Consumers tallied 39% of Black Friday e-commerce transactions and 61% of online traffic from their mobile phones.

Adobe said online Thanksgiving sales topped $4.2 billion, upped 14.5% from the previous-year period.

Regardless, of the e-commerce boom, more than 165 million people are projected to frequent retail stores from Thanksgiving through Dec. 1, according to the National Retail Federation.

“They’re making it easy for you to purchase however you want to purchase, whether it’s going into the physical store, ordering online and picking it up or ordering it online and having it shipped to you,” Sucharita Kodali, analyst at Forrester Research, said in a statement. Forrester partnered with Adobe on the data.

Adobe: Strong November Holiday Sales Portend Robust Winter Retail Season

With the winter retail season about to start, new data from Adobe Analytics suggests some big-box stores will score big through Christmas — based on analysis of more than a trillion visits to over 4,500 retail sites.

Adobe said winter retails sales from Nov. 1 to Nov. 26 increased 15% to $143.7 million compared to the previous-year period.

The software company projects November-December retail sales will increase 3.8% to 5% — up from 2.1% last year. Cyber Monday (e-commerce) is projected to generate $9.4 billion in revenue.

“With the shorter shopping season and retailers starting their promotions earlier, Adobe is seeing holiday discounts already well underway even before Thanksgiving day,” Jason Woosley, VP of commerce, said in a statement.

Top retailers over the holiday season include Target, Walmart, Best Buy and Amazon due in large part to their e-commerce platforms.

Cyber Monday Projected to Set All-Time Sales Record — Despite New Tax Rules

With e-commerce booming year-round, Cyber Monday (Nov. 26), the annual winter retail event closing the Black Friday weekend, is projected to generated $7.8 billion in online sales – 18% above last year’s record tally of $6.6 billion, according to Adobe Analytics.

The figure follows record online spending on Black Friday when consumers spent $2.6 billion the day after Thanksgiving – up 24% from $2.09 billion last year.

Notably, Black Friday and Cyber Monday flourished despite the fact major retailers such as Walmart and Amazon touted online specials ahead of the annual retail event.

More importantly, online sales increased as about 30 states are in the process of implementing taxes for online purchases following a U.S. Supreme Court ruling in June that found the state of South Dakota could force online retailers such as Wayfair and Amazon to charge sales tax even if the companies do not have a physical presence in the state.

The change meant online shoppers could expect to pay upwards 8% more for e-commerce purchases depending where they live.

“If you’re an online shopper looking to avoid paying sales taxes, that’s about to change,” said Julia La Roche with Yahoo! Finance, who added she doesn’t expect sales tax to put a damper on ecommerce going forward.

“People are still going to shop online [for the convenience],” La Roche said.

Amazon closed Nov. 26 up more than 5% at $1,581.33 per share.