Adobe Stands by $189B Holiday Forecast; Tech Discounts Average 24%

Despite inventory shortages, major computer discounts kicked in Sunday at an average 27.8% savings, Adobe Analytics emailed Tuesday. Overall electronics discounts averaged 23.6%. Some $58.9 billion was spent Nov. 1 through Monday. The new PlayStation 5 and Xbox Series X/S game consoles are selling out quickly, said the analytics firm. Top electronics sellers include Amazon’s Echo and Fire TV and Oculus' virtual reality headsets. Shoppers are using their smartphones to place orders more than ever, with $22.8 billion spent on handsets Nov. 1-23, a 49% year-on-year increase, it said. Large retailers with over $1 billion in annual revenue had revenue gains of more than 136% over the past three days vs. an October baseline; small-to-medium size retailers had a 117% boost. Some 70% of consumers said the surge in COVID-19 cases over the past two weeks prompted them to buy more online. Two-thirds have started holiday shopping; 20% plan to start over Black Friday weekend; and 56% believe the best discounts will be saved for Black Friday and Cyber Monday, said a November survey of 1,000 U.S. consumers. Expedited shipping grew 67%; standard shipping is up 61%, said Adobe. Curbside and in-store pickup rose 115% year on year; retailers that offer it are having 25% of orders fulfilled using the options and report 32% higher conversion than retailers that don’t offer it. Adobe reaffirmed its full season November-December forecast of $189 billion spent online for 33% year-on-year growth: It predicts Thanksgiving sales will hit $6 billion, up 42.3%; Black Friday sales growth of 39.2% to $10.3 billion; and Cyber Monday sales rising 35.3% to $12.7 billion. Retailers are accelerating promotional strategies while shipping and fulfillment systems “stretch under pressure,” said analyst Taylor Schreiner. Despite an earlier start to holiday deals, Adobe expects “record buying” through Thanksgiving weekend: “Shoppers have been conditioned to expect deals and save money, and retailers will meet the call.” Nov. 9-17, when vaccine news emerged from Pfizer and Moderna, bookings for 2021 travel grew 35% vs. the year-ago span. Tickets for air travel are slower than in years past, but “consumer optimism is rising,” Schreiner said.