US Holiday Sales Surge Past Forecasts on Deep Discounts
Shoppers spent a record $41.1 billion online from Thanksgiving to Cyber Monday, signaling resilient consumer demand despite economic headwinds.
U.S. consumers kicked off the holiday shopping season with record-breaking online spending, shrugging off persistent inflation and economic uncertainty to deliver a much-needed boost to the retail sector.
Shoppers spent an estimated $41.1 billion online during the five-day stretch from Thanksgiving through Cyber Monday, an 8.2% increase from the previous year, according to data from Adobe Analytics. The robust performance handily outpaced muted forecasts and eased concerns of a significant pullback in consumer activity that had shadowed the industry for months.
The holiday weekend was anchored by strong individual day performances. Black Friday saw online sales hit a record $10.8 billion, a jump of 10.2% from 2023. The momentum carried through to Cyber Monday, which remained the season's biggest online shopping day, with consumers spending another $13.3 billion.
The surge in spending was largely fueled by aggressive promotions from retailers aiming to clear excess inventory and attract budget-conscious consumers. Discounts hit record levels, with electronics averaging nearly 28% off listed prices and toys seeing price cuts of over 27%.
"Consumers have become very strategic, waiting for the deepest possible discounts before opening their wallets," said a senior analyst covering the retail sector. "This year, retailers delivered, and shoppers responded in force."
Another key driver was the increasing adoption of 'buy now, pay later' (BNPL) services. These flexible payment options powered $686.3 million in online purchases on Black Friday alone, an 8.8% year-over-year increase. The growth of BNPL highlights a behavioral shift, allowing consumers to manage larger purchases amid tighter household budgets.
The strong start to the season provided a tailwind for retail stocks and offered a dose of optimism for the fourth quarter. The figures suggest that while consumers remain price-sensitive, their willingness to spend on desired goods remains intact. The results will be closely watched by economists and the Federal Reserve for insights into the health of the U.S. consumer, a critical driver of the nation's economy.
However, the reliance on steep discounts may pose a challenge to retailers' profit margins. As the holiday season progresses, the key question will be whether this early momentum is sustainable or if it merely pulled forward sales that would have occurred later in December. For now, the record-breaking weekend has set a positive tone for what is the most critical period of the year for the retail industry.