American Consumers Spend Big on Cyber Week Despite Rising Prices
U.S. consumers defied higher prices and tariffs this Cyber Week, spending heavily online despite tighter budgets. Data from Adobe Analytics showed that shoppers spent $14.25 billion on Cyber Monday, pushing total online sales for the Thanksgiving weekend to $44.2 billion. This marked a 7.7% increase from the same period last year, when spending rose 8.2% to $41.1 billion. Bargain hunters took advantage of deals on electronics, fashion, and household essentials, giving retailers a strong start to the holiday season.
Shoppers Focus on Value and Incentives
Mary Epner, adjunct professor at the Fashion Institute of Technology, told Reuters that this year’s Black Friday and Cyber Monday period was “unlike any other.” Tariffs have raised retail prices, forcing brands to pass higher costs on to consumers. As a result, shoppers were more selective, prioritising value over impulse buys.
According to Adobe, “buy now, pay later” plans reached an all-time high on Cyber Monday, fuelling $1.03 billion in online purchases — a 4.2% rise from last year. Many retailers also offered free gifts and limited-time promotions to attract cautious consumers. These tactics boosted sales but also revealed the financial strain many households still face amid persistent inflation.
The Challenge Ahead for Retailers
Despite the strong start, experts warn that the rest of the holiday season will determine whether retailers can sustain momentum. Epner noted that retailers risk having to slash prices later if they overstocked during Cyber Week. Deep discounts and creative marketing strategies may return as brands work to clear shelves and meet year-end targets.
Adobe forecasts that U.S. online sales will grow by more than 5% and exceed $250 billion between November and December. Still, as Epner pointed out, the true test will come after the initial shopping surge. The depth of future discounts and the number of promotional “gimmicks” will reveal how well retailers manage a consumer base determined to stretch every dollar.
with inputs from Reuters