Cyber Monday poised to be the largest purchasing day of the 12 months, however should still fall in need of final 12 months’s complete
Cyber Monday is likely to be the biggest shopping day of the year, but it could be below the final balance in 2020.
The news comes from an Adobe ADBE, +1.95% forecast, which forecasts between $ 10.2 billion and $ 11.3 billion after sales of $ 10.8 billion last year.
That prediction came after Black Friday sales fell year-over-year, ending at $ 8.9 billion from $ 9.0 billion in 2020. Thanksgiving Day sales remained at $ 5.1 billion.
See: Black Friday e-commerce sales are projected to approach $ 9 billion even as the power of the big shopping days sinks
Adobe attributed the declines to strong sales at the start of the season. From November 1st through November 28th, retailers made $ 99.1 billion in purchases, up 13.6% year over year.
“Online sales on major shopping days like Thanksgiving and Black Friday are falling for the first time in history,” said Taylor Schreiner, director of Adobe Digital Insights, in a statement.
“With 21 days in November causing over $ 3 billion in spending, which is what we know [is] Cyber Week looks more and more like Cyber Month. “
Another new development is the decline in Cyber Monday promotions. According to Adobe, TVs with discounts of around 16% are still the best deal, even though prices have dropped 19% in the last year.
The problems with the supply chain remain. Adobe reported that out of print news items were up 16% compared to the weekend of November 20 and November 21, but shelves weren’t as empty as expected.
“When talking to customers, I would say expectations were very low and there was a feeling that stores were in better shape than predicted,” said David Ritter, managing director of the consumer and retail group at Alvarez & Marsal, in a statement . Alvarez & Marsal is a professional services consultancy.
“There were certain categories that appeared to be in worse shape than others – electronics, pets, and apparel all had significant shortages in select stores.”
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Even if things didn’t go as bad as expected over the weekend, Ritter suggested that customers get items on their lists quickly.
“Interesting note – in many of the stores I visited, staff said that all products had been pushed to the ground in a ‘get it while we have it’ approach to address problems that might arise later could indicate the Christmas season, ”said Ritter.
Sensormatic Solutions data found that trips to stores were still 28.3% lower than in 2019, despite shoppers returning to brick and mortar stores to avoid issues that could arise from the delivery of orders.
“One driver of this increased traffic could be persistent supply chain challenges and delivery delays that result in consumers shopping early to ensure their gifts arrive on time,” said Brian Field, senior director of Global Retail Consulting, Sensormatic Solutions, in an explanation. Sensormatic Solutions is part of Johnson Controls JCI, + 0.81%,
that focuses on security, sustainability, automation and more in buildings.
Field expected customers to enjoy the full range of services, including online purchase and in-store pickup, to get gifts under the tree by December 25th.
On November 27 and 28, in-store use of online purchase and collection services decreased 10% year over year, “a sign that consumers are more confident in their purchasing power,” noted Adobe.
The SPDR S&P Retail ETF XRT, -0.37% has risen by almost 52% over the year to date. The Amplify Online Retail ETF IBUY, -0.50% is down 10.7%. And the S&P 500 Index SPX, + 0.95%, gained 23.5% over the reporting period.