U.S. Cyber Monday predicted to generate a historic $9.4 billion in sales
Cyber Monday Breaks Records with Heavy Promotions and Intense Discounting
Cyber Monday 2021 saw a significant surge in online sales, with merchants raking in $473 million by 9 a.m. Eastern time, according to Adobe. This year's event is expected to shatter records, with Adobe Analytics predicting a new high of $9.4 billion in U.S. sales, an 18.9% increase over last year.
Amazon led the pack of the 80 largest online retailers in the USA, generating the highest revenues on Cyber Monday. Discounting was a major factor in these sales, with promotions echoing Black Friday price cuts and discounting intensifying across all categories, including luxury items.
The trend towards more online shopping and heavy discounts is likely to impact malls and department stores the most. Some of the struggles faced by these traditional retailers during Black Friday are "self-inflicted," according to MKM Partners Managing Director Roxanne Meyer. Meyer believes that the over-reliance on customer loyalty programs and promotions last year, as opposed to discounting to clear goods quickly, has contributed to their current predicament.
Meyer also noted that approximately half of the promotions during Black Friday weekend/Cyber Monday were the same as last year, while the other half saw an uptick due to company-specific merchandise issues. Discounting at mall-based retailers was between 30% and 50% off, similar to last year.
The bankruptcy of Barneys has also played a role in the price cuts at higher-end department stores like Neiman Marcus. The liquidation of Barneys' inventory has forced luxury players to slash prices, putting pressure on the market.
Cyber Monday was also a boon for small merchants, with Adobe predicting it to be the biggest sales day for them. The trend of mobile shopping was preferred by more people than in previous years, although current figures for this trend were not provided.
Marketing for the holiday sales event began in earnest on Sunday, with retailers focusing more on discounting to clear goods quickly compared to last year's strategy. Store-level promotions may not tell the whole story given the significant number of sale and clearance SKUs online.
In conclusion, Cyber Monday 2021 was marked by heavy promotions and intense discounting, with Amazon leading the pack of the 80 largest online retailers in the USA. The trends towards more online shopping and heavy discounts are likely to impact traditional retailers the most, with some of the struggles faced by malls and department stores during Black Friday being "self-inflicted."
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