This year’s Cyber Monday spending is projected to top $12 billion as consumers seek deals.
That spending amount — a record — marks a 9.7% increase over last year, Reuters reported Tuesday (Nov. 28), citing data from Adobe Digital Insights. A third of that spending is expected to come from last-minute shoppers.
Adobe also projected that a record number of shoppers would use buy now, pay later (BNPL) services for Cyber Monday to ease financial stress, the report said.
“Whether the consumer is going to continue at this pace or not, we’ll continue to see them spend,” Laffer Tengler Investments CEO Nancy Tengler said, per the report. “I think this is going to be a much better-than-advertised Christmas.”
This year has already seen shoppers break online spending records for Black Friday, the kick-off of the holiday buying season.
Adobe’s projection about record BNPL use lines up with past reporting by PYMNTS, which predicted $9.3 billion in installment payment spending for November.
“The economic pain of high interest rates and inflation drives consumers to explore alternatives to traditional credit solutions,” PYMNTS wrote last week. “BNPL is evolving beyond a mere payment alternative to become a crucial yet practical solution for helping to manage personal finances. With high inflation and rising costs, consumers are turning to BNPL more as it is appealing due to its affordability. They also view it as an alternative to high-interest credit card debt.”
Meanwhile, PYMNTS examined the way retailers have been trying to attract value-conscious consumers amid a tighter spending environment. They have attempted several methods of delivering value, with some strategies more successful than others.
Best Buy, for example, focused on promotions and in-store experiences to drive incentives for customers to reach the checkout counter.
“To stimulate consumer spending, Best Buy has ventured into providing curated gift lists and launched a new feature called ‘Yes, Best Buy Sells That’ on both the website and app,” PYMNTS wrote Tuesday. “This feature enables customers to discover the latest in technology and gift items…”
On the other hand, Nordstrom’s focus on discounts and value-driven choices to align with shopper preferences through Nordstrom Rack has not performed as well as expected, even as off-price retailers are witnessing a jump in demand.
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