Turkey Day Triumph: Online Shoppers Break Spending Records

Thanksgiving Day 2024 will be remembered as a day of feasting, family, and, for retailers, a bonanza of online spending. A record-breaking $6.1 billion was spent by U.S. shoppers, an 8.8% increase from the previous year, according to Adobe Analytics. This surge in spending can be attributed to the allure of bigger-than-expected discounts, particularly in categories like electronics and apparel, which drove impulse shopping and set new records for mobile purchases.

The average global discount rate remained unchanged from 2023 at 26%, while in the U.S., it was 28%. Despite the consistency in discount rates, consumers were enticed by the bigger-than-expected markdowns, with sales growth in home appliances, dining, and furniture leading the pack (up 20%) and footwear and handbags close behind (up 18%). Adobe noted that consumers were buying higher-priced items in electronics, sporting goods, and appliances, while toys, especially those related to popular franchises like Harry Potter and Marvel, flew off the virtual shelves.

Mobile shopping played a significant role in this spending spree, with 59.5% of all online sales made from mobile devices, worth $3.6 billion. This was a 10.5% increase from the previous year and the largest share of mobile sales Adobe has ever recorded for Thanksgiving. Salesforce also witnessed mobile's dominance, with it driving 72% of orders and 80% of online traffic.



The peak sales hour for activity on Thanksgiving Day was 9 p.m. EST, indicating a trend towards later shopping in the evening. This shift in consumer behavior allows shoppers to take advantage of Cyber Week discounts while balancing their schedules with family and social commitments. The later peak sales hour also suggests a willingness among consumers to engage in impulsive purchases, as demonstrated by the strong growth in sales during this period.

Retailers' promotional strategies, coupled with consumers' appetite for discounts, propelled this record-breaking spending. Despite no change in average discount rates, the bigger-than-expected markdowns in key categories were enough to incentivize shoppers to spend more. This trend signals a willingness to splurge, with consumers eager to capitalize on deals and discounts.

The Cyber 5 period (Thanksgiving to Cyber Monday) is expected to be the strongest ever, with strong sales growth already observed in key categories. As we approach Cyber Monday, investors should keep an eye on the retail sector, particularly those companies with robust online platforms and mobile-friendly offerings. With consumers proving their willingness to spend, retailers' ability to capitalize on this demand will be crucial in determining their success during this critical shopping period.



In conclusion, Thanksgiving Day 2024 marked a triumph for online retailers, with U.S. shoppers setting a new spending record of $6.1 billion. Driven by bigger-than-expected discounts, particularly in electronics and apparel, and fueled by mobile shopping, this turkey-day shopping spree bodes well for the Cyber 5 period. As investors, we should watch the retail sector closely, focusing on companies with strong online platforms and mobile-friendly offerings that can capitalize on this consumer spending momentum.