People shop during a Black Friday sales event at Macy’s flagship store on 34th St. in New York City, U.S., November 22, 2018. REUTERS/Stephanie Keith/File Photo Acquire Licensing Rights
Oct 5 (Reuters) – Online sales during the crucial U.S. holiday season are expected to rise 4.8% from a year earlier as retailers go all out to woo inflation-hit consumers with even bigger discounts and promotions, a report from Adobe Analytics showed on Thursday.
The sales are also expected to grow at a much faster pace and hit $221.8 billion for the period between Nov. 1 and Dec. 31 which includes some of the biggest shopping days such as Cyber Monday, Thanksgiving and Black Friday. That compares with $211.7 billion a year earlier.
Adobe said the holiday season would see heavy discounts this year, especially in the toys, sporting goods and furniture categories, with markdowns peaking at 35%.
Last month, Mastercard’s (MA.N)SpendingPulse report forecast a 6.7% rise in online sales during the holiday season.
Retailers such as Walmart (WMT.N), Target (TGT.N) and Macy’s (M.N) prepare months in advance for the all-important season as it brings in nearly a third of the industry’s annual revenue in a good year.
With Amazon.com (AMZN.O) hosting its second Prime Day sale in October, holiday shopping is expected to start as early as this month.
The Amazon event is expected to bring in $8.1 billion in sales for retail overall this year, Adobe said, adding that some cost-conscious shoppers may skip the costlier option of quicker shipping for standard delivery or curbside pickup.
Americans have been keeping a tight lid on their non-essential spending in the past two years as they feel the pinch of inflation.
Shoppers, especially the younger ones, are more likely to use buy-now-pay-later services to stretch their budgets, according to the report.
Adobe’s forecast relies on direct consumer transactions based on over 1 trillion visits to U.S. retail websites.
Reporting by Savyata Mishra in Bengaluru; Editing by Anil D’Silva
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