Thanksgiving Online Shopping Reaches $5.1B Record

For many, Thanksgiving is a time for feasting, family gatherings, reflection, and relaxation. However, an increasing number of people are also incorporating shopping into their holiday traditions. Recent data from Adobe analytics indicates that U.S. consumers spent a record-breaking $5.1 billion online yesterday.

Adobe’s marketing technology division is closely monitoring online sales in real-time across 80 of the top 100 U.S. retailers, encompassing approximately 100 million SKUs. Although the final sales total was lower than the initially projected $6 billion, it still represents the highest amount ever spent online on Thanksgiving Day, a day when physical stores are traditionally closed (where pandemic-related shutdowns haven’t occurred).

Adobe reports that when combined with online shopping activity from recent weeks and forecasts for the coming weeks—including today, Black Friday—U.S. online retailers are still expected to exceed $189 billion in sales this holiday season, a figure aligned with predictions from other sources. Black Friday and Cyber Monday are anticipated to remain the two largest online sales days, with today’s sales projected to range between $8.9 billion and $10.6 billion, representing a potential increase of 20% to 42% compared to the previous year.

Data from Shopify, which tracks activity across its platform of over 1 million merchants, reveals that the average global cart value was $86.80, while in the U.S. it reached $90.40.

Adobe attributes the slightly lower-than-expected sales figures to retailers initiating holiday sales earlier in the season. According to the company, “Retailers of all sizes appear to have successfully encouraged shoppers to make purchases earlier in the season with early discounts and effective promotions.” In fact, each day leading up to Thanksgiving saw sales exceeding $3 billion.

“While yesterday marked a record-breaking Thanksgiving Day with over $5 billion spent online, the growth rate wasn’t as substantial as we observed at the beginning of the pandemic,” explained Taylor Schreiner, director of Adobe Digital Insights. “Significant discounts and proactive promotions launched in early November successfully prompted consumers to spend earlier. Despite the influence of COVID-19, the elections, and uncertainty surrounding stimulus packages on consumer behavior, this year has been exceptional for e-commerce, with many consumers still planning to make remaining gift purchases today and on Cyber Monday in pursuit of the best deals.”

To provide context, Adobe’s $5.1 billion figure represents a 33.1% increase compared to 2019’s holiday sales season, and Thanksgiving Day sales themselves are up 21.5% from the $4.2 billion spent online on Thanksgiving in the prior year.

These numbers offer a hopeful indication that, despite the economic challenges of 2020 caused by the COVID-19 pandemic, retailers may be able to recoup some of their losses over the next few months, which traditionally represent the most crucial sales period.

As reported over the past several months, 2020 has been a landmark year for e-commerce, with the existing trend of increased online browsing and shopping—which had been growing for years—receiving a significant boost from the COVID-19 pandemic.

The need for greater social distancing to curb the spread of the coronavirus has led many to avoid crowded places like stores, and has encouraged people to stay home, where they have increasingly turned to the internet to fulfill their needs.

These trends are not only impacting those already accustomed to online shopping; they are also introducing a new segment of consumers to the platform.

Adobe reports that so far this week, 9% of all sales have been “generated by net new customers as traditional brick-and-mortar shoppers turn online to complete transactions in light of shop closures and efforts to avoid virus transmission through in-person contact.” Notably, online sales growth was 47% higher in U.S. states with stricter COVID-19 restrictions—whether related to gathering sizes or the closure of certain venues like shops.

Black Friday, the day following Thanksgiving, has historically signaled the start of the holiday shopping season, but the expansion of e-commerce has elevated the importance of Thanksgiving Day, when physical stores are closed and many people are at home. This year appears to be continuing that pattern.

“Families have many cherished traditions during the holidays. However, travel restrictions, stay-at-home orders, and concerns about spreading the virus are preventing Americans from enjoying many of them. Online shopping is one festive activity that can be maintained virtually, and sales figures demonstrate that gift-giving remains a beloved tradition this year,” stated Schreiner.

(It is worth noting that Adobe predicts Black Friday will still generate over $10.3 billion in online sales this year.)

Examining specific product categories:

Adobe indicates that board games and other items that “promote family togetherness” are experiencing substantial growth, with sales up five times compared to last year. Chess is seeing a particularly strong surge in interest following the popularity of the Netflix series, “The Queen’s Gambit.”

Similarly—reflecting the increased trend of online grocery shopping—grocery sales increased by a remarkable 596% in the last week compared to October, as people stocked up for the long weekend (regardless of whether it was spent with family).

Other popular items include Hyrule Warriors: Age of Calamity, Just Dance 2021, as well as vTech toys and Rainbow High dolls.

Amazon’s announcement this week regarding expanded delivery options highlights the evolving landscape of e-commerce, extending beyond simple home delivery and becoming a key differentiator for retailers. Curbside pickup has grown by 116% over the past year, and expedited shipping is up 49%. Adobe reports that 56% of online purchases were fulfilled via curbside pickup or expedited shipping.

Smartphones are also playing an increasingly significant role. Adobe reports that $25.5 billion has been spent via smartphones in November to date—up 48% compared to 2019. As the day progressed, more people shifted to shopping on their mobile devices, with smartphones accounting for roughly half of all online sales (compared to 38.6% in the morning). Shopify reported an even higher smartphone usage rate, stating that it accounted for a substantial 70% of all sales on its platform on Thanksgiving globally.

In the U.S., Adobe notes that major retailers—including Walmart, Target, and Amazon—continue to dominate the shopping landscape, collectively generating over $1 billion in revenue and experiencing a 147% increase in sales since October. This could be attributed to more sophisticated websites, which boast conversion rates 100% higher than those of smaller businesses. (This presents an opportunity for companies to develop tools that help smaller businesses compete more effectively.)

However, Shopify presents a different perspective. As a platform empowering brands to create e-commerce experiences, its focus on the “long tail” of online retailers—with approximately 1 million merchants utilizing its platform for sales, fulfillment, and more—suggests that business size isn’t the sole determinant of success. Having an efficient sales experience tailored to the products offered is equally important.

Shopify reported peak U.S. sales of $919,000 per minute at approximately 9 p.m. EST, with a global peak of $919,000 per minute at 4:35 p.m. EST. Los Angeles, New York, and London were the most active cities.