Online shopping in the United States will surpass US$140 billion this holiday season, with Cyber Monday alone projected to generate US$9.4 billion in sales.
According to Adobe’s spend prediction, online holiday shopping from November to December will grow to US$143.7 billion, an increase of 14.1 per cent over the same period last year. Should the forecast for Cyber Monday sales hold, it will represent an increase of 18.9 per cent over 2018.
E-commerce growth is estimated to be 14.1 per cent as overall retail growth will taper off at four per cent. However, retailers will have an uphill climb ahead as they try to get maximum dollars from a shortened holiday period. There are 22 days between Cyber Monday and Christmas, six days fewer than last year. To combat the reduced holiday period, retailers will start sales earlier, Adobe said, with Thanksgiving estimated to grow 20%, increasing its revenue by US$700 million over last year.
What’s more, each day in November and December is expected to gross at least a billion dollars in sales.
Despite the data showing solid online growth for retailers, Adobe said there were threats to retail performance that made predicting spend more difficult; among these factors are trade tariffs and concerns of a potential recession.
Adobe based its insights on aggregate data from several of its platforms including Experience Cloud, Analytics Cloud and Advertising Cloud. Its projections also take into consideration analysis of more than one trillion visits to US-based retail websites and insights from sales of more than 55 million unique products, it said.
Other key highlights shared by Adobe are that smartphone shopping will be responsible for almost 50 per cent of retail holiday growth and that consumers will purchase more from their phones than desktops for Christmas for the first time ever.