Retail

Cyber Monday Sales Set A Record As Shift Online Continues

Cyber Monday turned out to set a record, with sales expected to be $7.9 billion in the U.S. alone.

Reuters, citing data from Adobe Analytics, which measures transactions from 80 of the leading 100 retailers in the U.S., reported sales picked up Monday night as shoppers on the West Coast scoured the internet for deals after work. In the late evening on Monday (November 26), Adobe announced Cyber Monday sales would be $100 million more than it forecast earlier in the day, reported Reuters. “Many shoppers have waited on certain purchases, with three hours tonight expected to bring in as much revenue as an average full day,” Taylor Schreiner, director of Adobe Digital Insights, told Reuters. As of 7 p.m. ET Monday, sales for retailers online were up 20 percent from last year’s Cyber Monday, with Adobe pointing to a surge in orders being placed via smartphones.

Meanwhile, Reuters pointed to Mastercard, which forecasted via its Mastercard SpendingPulse for sales to be up 25 percent to at least $3 billion. Its forecast is based on sales through Mastercard payment networks and estimates from cash and check payments.  Still, the brisk sales are coming at the expense of profits for brick and mortar players, warned Bob Phibbs, chief executive of Retail Doctor, the consultancy firm in the Reuters report. He said online discounts and free shipping are cutting into retailers’ profits in a significant way. “Retailers are just spending money in the hopes that they don’t lose too much more,” he said.

The strong showing during Cyber Monday underscores the shift among consumers to do most if not all of their holiday shopping online. Adobe found the average shopping basket during Cyber Monday was $138 nationwide, which up 6 percent from a year ago. Toys were one area that Adobe Analytics said was expected to have the largest discounts as retailers aimed to capitalize on the bankruptcy of Toys ‘R’ Us. Reuters noted Target had 30 percent off select toys deals, while Kohl’s had Lego sets that were 30 percent to 40 percent off.

 

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