Cyber Monday, today’s annual click-it purchasing extravaganza, is expected to bring retailers the second biggest daily boost of the holiday shopping season.
Many consumers now include Cyber Monday, which dates back to 2005 when the National Retail Federation coined the term, along with the more historic Black Friday among their holiday shopping traditions. The
NRF reports that Black Friday continues to be the most popular day to shop, attracting an estimated 130.7 million people nationwide. However, Cyber Monday is the second most popular day, attracting an estimated 71.1 million of those planning to shop over the weekend.
Local retailers have been trying to cash in on the
Cyber Monday tradition for some time; however, their efforts magnified during the pandemic when the government forced many brick-
and-mortar stores to close periodically, and sometimes dealt with hesitant in-person shoppers even when they were allowed to reopen with precautions.
Tina Yamaki, president of Retail Merchants of Hawaii, said many Hawaii retailers started their online efforts prior to the pandemic, but the number realizing that it pays to have an omnichannel presence has grown since the pandemic.
“When the pandemic hit, a lot of people learned how to shop online, especially our kupuna who normally wouldn’t do that.(Shoppers) are finding it’s easier (to) get it shipped to their house — anything from clothing to groceries to 50-pound (bags of) dog food,” she said. “People think that COVID is over, but it’s kind of the new norm; we are also people shopping online and going to pick it up curbside.
(Retailers realize) it can’t just be brick and mortar, that they have to be online and on social media.”
It’s challenging for local mom-and-pops, especially those that don’t have an e-commerce presence, to compete with mass retailers or the behemoth Amazon. Still, the Cyber Monday forecast looks good for Hawaii’s e-commerce stores, the local brick-and-mortar stores with an online presence, as well as for local crafters and the like, who sell their wares online or have been picked up by larger companies that sell their goods online. Cyber Monday also supports jobs for Hawaii employees who work in fulfillment for larger national corporations.
Adobe Analytics has forecast U.S. online holiday sales will hit $221.8 billion, representing 4.8% year-over-year growth for this festive holiday season, which runs
Nov. 1 to Dec. 31. That’s more growth anticipated
for online holiday sales
this year than 2022, when shoppers spent $211.7 billion, up 3.5% from the year prior.
Adobe Analytics expects that Cyber Week — the
shopping period including Thanksgiving, Black Friday and Cyber Monday — will drive $37.2 billion in online spending, up 5.4% year over year and representing 16.8% of the holiday season. Cyber Monday alone is expected to generate $12 billion in online spending, up 6.1% year over year, according to Adobe Analytics data.
Patrick Brown, vice president of growth marketing at Adobe, said in a statement, “Despite an unpredictable economic environment, where consumers face several challenges including rising interest rates, we expect strong e-commerce growth this season on account of
record discounts and flexible payment methods.”
Brown added, “Buy Now, Pay Later in particular has become increasingly mainstream and will make it easier for shoppers to hit the buy button, especially on mobile devices where over half of online spending will take place.”
Another draw for e-commerce shoppers is that Adobe Analytics is forecasting record online discounts, with up to 35% off listed prices for this holiday season. The deepest discounts are expected to hit during Cyber Week, with today expected to offer the best deals for electronics and furniture.
Adobe Analytics has forecast that those looking for the best deals in appliances will find them Thursday, and the biggest discounts for sporting goods are expected Wednesday.
Deloitte’s “2023 Black Friday-Cyber Monday Survey” indicates that “digital preferences brought on by the pandemic are here to stay with 61% of the budget to be spent online, while 39% will still be in-store.”
Deloitte expects that 4 in 10 will have completed their holiday shopping between Black Friday and today. While Black Friday was expected to be the peak day with 65% of shoppers participating, as many as 58% of shoppers were expected to look for online deals today.
The lure of the deal is so powerful that nearly two-thirds of those surveyed told Deloitte that they
could be tempted to make
a Black Friday-Cyber Monday purchase while at work.
Brian McCarthy, principal, Deloitte Consulting LLP, said in a statement, “As consumers tackle their gift lists, we see Black Friday-Cyber Monday as an omnichannel opportunity this year — to attract both consumers who have come to embrace online shopping for its convenience, as well as those who are excited to head to stores to capture the best deals without potential delivery fees. Retailers who understand shifting consumer preferences could reshape the way shoppers make the most of holiday deals.”
Local brick-and-mortar retailers like Manaola, Homegrown and Sweet Okole Jewelry say they also are harnessing the power of e-commerce.
Shayla Lozano, assistant manager of Sweet Okole Jewelry, said she also uses social media to create demand to shop at the store.
“I put out a weekly special every Saturday on Instagram,” Lozano said. “It’s really popular.”
Many of the Hawaii small-business owners who are part of Pop-up Makeke, a centralized online community marketplace created during the pandemic by the Council for Native Hawaiian Advancement, also are offering holiday specials. The site is offering free shipping on qualifying orders over $99.
While online holiday shopping is more popular than ever, it does not fully substitute for in-person
buying, which offers shoppers the chance to make memories and get a sensory imprint before they purchase, and offers greater protection from fraud.
Yamaki said, “A lot of people love to shop online, but they still like to go into the store to see, touch and feel the items because we’ve all seen on social media where you order one thing and when it comes it’s something totally different. You’re getting an adult-sized chair and what arrives is meant for a doll.”
She also cautioned those shopping in social media marketplaces or online to be “cautious on what site you are buying from. Buyer
beware.”
Retail analyst Stephany Sofos said she enjoyed shopping at Kahala Mall on Black Friday and was impressed with how retailers and mall security handled the crowds and exuded the spirit of the holidays.
“I’m a curmudgeon, but it was one of the most comfortable experiences in retail shopping that I’ve seen in a long time,” Sofos said. “It’s because shopping centers and retailers get it. They know that they have to be nice to customers because now with online, customers can (shop) anywhere in the world.”