Holiday Shopping Season Sees Record Online Spending Amid Economic Concerns
U.S. consumers achieved record online spending on Black Friday and Thanksgiving, with Cyber Monday poised for $14.2 billion, despite economic uncertainty and higher price expectations.
Overview
U.S. consumers spent a record $11.8 billion online on Black Friday and $6.4 billion on Thanksgiving Day, exceeding initial predictions for the holiday shopping kickoff.
Cyber Monday is projected to be the season's top online shopping day, with an estimated $14.2 billion in sales, breaking previous spending records.
Despite dour economic views and three-quarters of shoppers bracing for higher prices, consumer spending remains robust, with high-income consumers planning to increase holiday spending.
Significant discounts, reaching up to 30% on electronics and 26% on apparel, are driving purchases and are expected to continue through Cyber Monday.
The National Retail Federation forecasts over $1 trillion in U.S. holiday spending for November-December, significantly boosted by an estimated $20.2 billion from buy now, pay later loans.
Analysis
Center-leaning sources frame this story by highlighting the paradox of record holiday spending occurring amidst significant economic uncertainty. They consistently juxtapose high sales figures with underlying concerns like inflation-driven growth, reduced purchasing volume, and consumer reliance on credit, suggesting a more nuanced and less optimistic economic picture.
Sources (7)
FAQ
Record online spending was driven by significant discounts on electronics and apparel, robust high-income consumer spending despite economic uncertainty, and the convenience of buy now, pay later loans.
Cyber Monday spending is projected to reach $14.2 billion in 2025, breaking previous online spending records for that day.
The National Retail Federation forecasts over $1 trillion in U.S. holiday spending for November-December 2025, a new milestone, with growth expected to be between 3.7% and 4.2% year over year.
Despite economic uncertainty and expectations of higher prices, consumer spending remains strong, with inflation driving nominal sales growth but real item purchases rising modestly; some shoppers rely more on buy now, pay later loans to manage costs.
Buy now, pay later loans are expected to contribute about $20.2 billion in online spending during the holiday season, an increase of 11% from last year, supporting consumer purchases amid financial concerns.
History
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