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Bargain hunters are on pace to spend a record $12 billion on a US online shopping spree

Bargain hunters are on pace to spend a record $12 billion on a US online shopping spree

Nov 28 (Reuters) – Online spending on Cyber ​​Monday is expected to exceed $12 billion, a record high, as bargain hunters snap up deals on items including Barbie dolls, Lego sets, headphones and smart watches, according to preliminary estimates from Adobe Digital Insights. .

It is estimated that American shoppers will spend between $12 billion and $12.4 billion on Cyber ​​Monday, the largest online shopping day in the United States.

Much of this spending, about $4 billion, is expected to come between 6pm and 11pm EST, especially from last-minute shoppers. On the high end, this would represent a 9.7% increase compared to the $11.3 billion spent on Cyber ​​Monday last year.

Retailers were convincing inflation-weary American shoppers to open their wallets Monday online with push notifications, text messages and streaming video ads touting cosmetics, electronics, toys, clothing and other products at dramatically reduced prices.

The campaign appears to have worked with US shoppers, who spent $8.3 billion online as of 6pm EST (2300 GMT), according to Adobe Analytics, which tracks data through Adobe’s Experience Cloud service for e-commerce platforms.

A record number of holiday shoppers struggling with lower prices are also expected to use Buy Now, Pay Later services for Cyber ​​Monday to ease the strain on their wallets, according to the company.

“Whether the consumer continues at this pace or not, we will continue to see them spending,” said Nancy Tingler, CEO of Laffer Tingler Investments. “I think Christmas will be much better than advertised.” Scottsdale, Arizona.

Shoppers have been searching for deals since 12 a.m. on Monday, with transactions during the first 12 hours of the day surpassing those made during the same time frame in 2022, according to data firm Criteo, which tracks sales from more than 700 U.S. brands and retailers. . .

“Consumers are very flexible and have found ways to purchase gifts and experiences for their children and pets,” said Matthew Katz, managing partner at consulting firm SSA & Company.

However, Walmart, Target and Home Depot are among the companies warning about consumer power, citing rising interest rates and the drain on household savings.

Charles Sizemore, chief investment officer at Sizemore Capital Management, said he expects retailers will have to cut more in the coming weeks.

This makes him worry about profit margins at a time when input and labor costs have not fallen and shoppers remain selective. “I really think margins are going to come down” during the holiday season, said Sizemore, whose company owns about $2 million in stock in Walmart and Target.

Amazon (AMZN.O) began marketing Cyber ​​Monday deals starting Saturday, including discounts of up to 46% on some Instant Pot kitchen appliances, 37% off some Vitamix blenders, and 35% off Amazon appliances including Amazon Fire 55 inch. television.

Walmart, eager to grab market share, cut prices on Sunday night, joining a trend of early discounts for retailers on big shopping days. On Monday, Walmart raised discounts on some clothing to 60%, compared to the 50% it offered on Black Friday.

Reuters graphics
An area chart with data from Insider Intelligence shows US retail e-commerce sales from Thanksgiving to Cyber ​​Monday every year from 2017 to 2022 and a forecast for 2023.

(Additional reporting by Siddharth Kaval and Ariana McLemore in New York and Deborah Sophia, Aishwarya Venugopal and Ananya Maryam Rajesh in Bengaluru) Edited by David Gregorio, Nick Zieminski, Matthew Lewis, and Lincoln Feast.

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Ananya reports on the U.S. consumer and retail sector covering breaking news and business related to retailers, apparel makers, cruises, luxury brands, beverage companies and publicly listed restaurant groups.