Cyber Monday sales projected to have hit record of at least $13.3B, helped by deep discounts
Richard Stabile is the founder of Long Island Spirits, a 17-year-old craft distillery that produces vodka, bourbon, whiskey and other alcoholic beverages in Baiting Hollow. Credit: Elizabeth Sagarin
Deep discounts helped propel record-high online spending on Cyber Monday, as consumers continue to shift their holiday shopping from stores to their cellphones, retail experts said.
Cyber Monday spending hit a record high of $13.3 billion, up 7.3% from the $12.4 billion spent on the day last year, according to Adobe Analytics, a San Jose, California-based software company.
Overall holiday sales are expected to slow this season, as consumers spend cautiously amid elevated interest rates and concerns about high inflation, though it is waning, retail experts project.
But price-sensitive shoppers took advantage of big discounts online Monday, which allowed them to “trade up” to higher-ticket items in electronics, appliances and sporting goods, said Vivek Pandya, lead analyst at Adobe Digital Insights.
“Because the discounts are so strong, it’s a much different environment than when gas prices were surging, or pretty elevated versus where they are now," Pandya said. "So you have consumers in a position where the online retail space is giving them a lot of discounts, and a lot of value, they’re in an incrementally better position to take advantage of those discounts and spend on themselves, or family or friends,” Pandya added.
The biggest online discounts on Cyber Monday were on electronics, averaging 30% off; toys, 26% off; and clothes, 23% off, according to Adobe.
Among the top-selling items online on Cyber Monday were TVs, Bluetooth headphones and speakers, digital cameras, skin care products and discounted clothes, Adobe said.
Popular toys online were Lego sets, card and board games and X Shot Insanity foam dart toy, while Xbox Series X, PlayStation 5 and Nintendo Switch OLED were some of the top-selling video gaming consoles.
Online shopping continues to chip away at the in-store crowds and chaos that has been associated with Black Friday weekend.
In-store foot traffic on Black Friday was down 3.2%, “reflecting broader trends of cautious spending and intentional purchasing that have defined 2024,” according to RetailNext, a Campbell, California-based shopping analytics company.
Meanwhile, e-commerce soared to new heights on Black Friday, when consumers spent a record $10.8 billion online, up 10.2% from the same day in 2023, according to Adobe.
Online shopping on Thanksgiving also hit a record high, $6.1 billion, up 8.8% from the day last year.
Overall retail spending in November and December is expected to grow between 2.5% and 3.5% to between $979.5 billion and $989 billion, compared with the $955.6 billion spent during the two-month period last year, according to the National Retail Federation.
Last year, holiday sales increased 3.9% from the 2022 season, according to the Washington, D.C.-based trade group.
For craft alcohol makers in New York State, Cyber Monday marked an online sales milestone this year.
Under a state law that went into effect Nov. 16, small craft-alcohol manufacturers can ship spirits, cider and mead directly to consumers in and outside New York State, potentially boosting their profits by skipping the “middlemen” distributors.
“Having the ability to sell spirits [directly] is a big deal for us,” said Richard Stabile, founder of Long Island Spirits, a 17-year-old craft distillery that produces vodka, bourbon, whiskey and other alcoholic beverages in Baiting Hollow.
A week ago, Long Island Spirits launched a new website on which all the company’s products are sold, said Stabile, who is also a master distiller. With no marketing of the new website, the company sold 15 bottles of alcohol online within a few hours on Cyber Monday, compared with three bottles sold during the entirety of last week.
“We’re hoping this is a big enhancement for us. And based on today, I’m think it’s going to be,” Stabile said.
Founded in Babylon in 2013, the Great South Bay Candle Co.'s business is split between selling goods wholesale to stores and at retail online, owner Theresa Gorgone said.
The candlemaker was offering a 10%-off sale on all products except for the wax melts, which are buy two, get one free, and free shipping on all orders over $25 on Cyber Monday and Tuesday.
Cyber Monday was a strong day of sales for the business, but it also has helped to have an online presence beyond an e-commerce platform, Gorgone said.
“The platform doesn’t bring your people to your site. … Through my social media, through my Instagram, through my Facebook, that helps bring people to my e-commerce site,” she said.
The span from Thanksgiving to Cyber Monday is considered the unofficial kickoff of the holiday shopping season, but the five-day period is declining in significance as retailers offer sales weeks or months earlier, pulling the season forward.
That trend played out at 3G Warehouse Inc., a third-party logistics company that warehouses and ships goods on behalf of manufacturers to stores and retail customers, said Lauren Nichols, founder of the Farmingdale-based company. About 40% of the business is made up of e-commerce orders, she said.
“We’re experiencing a spike [in Black Friday and Cyber Monday sales] but not as dramatic as in years past. But my feeling is that people have leveled out the sales to be a longer sale period versus one or two days,” she said.
Deep discounts helped propel record-high online spending on Cyber Monday, as consumers continue to shift their holiday shopping from stores to their cellphones, retail experts said.
Cyber Monday spending hit a record high of $13.3 billion, up 7.3% from the $12.4 billion spent on the day last year, according to Adobe Analytics, a San Jose, California-based software company.
Overall holiday sales are expected to slow this season, as consumers spend cautiously amid elevated interest rates and concerns about high inflation, though it is waning, retail experts project.
But price-sensitive shoppers took advantage of big discounts online Monday, which allowed them to “trade up” to higher-ticket items in electronics, appliances and sporting goods, said Vivek Pandya, lead analyst at Adobe Digital Insights.
“Because the discounts are so strong, it’s a much different environment than when gas prices were surging, or pretty elevated versus where they are now," Pandya said. "So you have consumers in a position where the online retail space is giving them a lot of discounts, and a lot of value, they’re in an incrementally better position to take advantage of those discounts and spend on themselves, or family or friends,” Pandya added.
The biggest online discounts on Cyber Monday were on electronics, averaging 30% off; toys, 26% off; and clothes, 23% off, according to Adobe.
Among the top-selling items online on Cyber Monday were TVs, Bluetooth headphones and speakers, digital cameras, skin care products and discounted clothes, Adobe said.
Popular toys online were Lego sets, card and board games and X Shot Insanity foam dart toy, while Xbox Series X, PlayStation 5 and Nintendo Switch OLED were some of the top-selling video gaming consoles.
Online shopping continues to chip away at the in-store crowds and chaos that has been associated with Black Friday weekend.
In-store foot traffic on Black Friday was down 3.2%, “reflecting broader trends of cautious spending and intentional purchasing that have defined 2024,” according to RetailNext, a Campbell, California-based shopping analytics company.
Meanwhile, e-commerce soared to new heights on Black Friday, when consumers spent a record $10.8 billion online, up 10.2% from the same day in 2023, according to Adobe.
Online shopping on Thanksgiving also hit a record high, $6.1 billion, up 8.8% from the day last year.
Overall retail spending in November and December is expected to grow between 2.5% and 3.5% to between $979.5 billion and $989 billion, compared with the $955.6 billion spent during the two-month period last year, according to the National Retail Federation.
Last year, holiday sales increased 3.9% from the 2022 season, according to the Washington, D.C.-based trade group.
Adobe expects U.S. online sales to hit $240.8 billion this holiday shopping season, representing 8.4% growth from the two-month period last year. Credit: Adobe Analytics
‘A big deal for us’
For craft alcohol makers in New York State, Cyber Monday marked an online sales milestone this year.
Under a state law that went into effect Nov. 16, small craft-alcohol manufacturers can ship spirits, cider and mead directly to consumers in and outside New York State, potentially boosting their profits by skipping the “middlemen” distributors.
“Having the ability to sell spirits [directly] is a big deal for us,” said Richard Stabile, founder of Long Island Spirits, a 17-year-old craft distillery that produces vodka, bourbon, whiskey and other alcoholic beverages in Baiting Hollow.
A week ago, Long Island Spirits launched a new website on which all the company’s products are sold, said Stabile, who is also a master distiller. With no marketing of the new website, the company sold 15 bottles of alcohol online within a few hours on Cyber Monday, compared with three bottles sold during the entirety of last week.
“We’re hoping this is a big enhancement for us. And based on today, I’m think it’s going to be,” Stabile said.
Founded in Babylon in 2013, the Great South Bay Candle Co.'s business is split between selling goods wholesale to stores and at retail online, owner Theresa Gorgone said.
The candlemaker was offering a 10%-off sale on all products except for the wax melts, which are buy two, get one free, and free shipping on all orders over $25 on Cyber Monday and Tuesday.
Cyber Monday was a strong day of sales for the business, but it also has helped to have an online presence beyond an e-commerce platform, Gorgone said.
“The platform doesn’t bring your people to your site. … Through my social media, through my Instagram, through my Facebook, that helps bring people to my e-commerce site,” she said.
The span from Thanksgiving to Cyber Monday is considered the unofficial kickoff of the holiday shopping season, but the five-day period is declining in significance as retailers offer sales weeks or months earlier, pulling the season forward.
That trend played out at 3G Warehouse Inc., a third-party logistics company that warehouses and ships goods on behalf of manufacturers to stores and retail customers, said Lauren Nichols, founder of the Farmingdale-based company. About 40% of the business is made up of e-commerce orders, she said.
“We’re experiencing a spike [in Black Friday and Cyber Monday sales] but not as dramatic as in years past. But my feeling is that people have leveled out the sales to be a longer sale period versus one or two days,” she said.
Tory N. Parrish covers retail and small business for Newsday. She has worked at the Pittsburgh Tribune-Review and Observer-Dispatch in Utica, N.Y.
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