Dive Brief:
- Signaling the impact of inflation, a new report from Signifyd predicts that Cyber Week sales will increase by about 5% this year compared to 2021, according to data shared with Retail Dive.
- The report predicts that product volume will decline by 13%, indicating that shoppers are spending more money for fewer items. This year’s Cyber Week sales will comprise 19% of the 2022 overall holiday sales, down from 21% last year.
- The report also noted that sales using discount codes increased 23% in September and 43% in October.
Dive Insight:
Signifyd’s research suggests that consumers are turning more to discount codes to save as inflation cuts into their spending power. The report said that rising prices had pushed e-commerce retailers to offer more discount codes to attract budget-conscious shoppers and entice them into spending for the holidays earlier than usual.
Other research has found that consumers are reducing their spending to combat inflation. A Bankrate survey found that 84% of consumers expected to cut holiday spending this year. Among the tactics Bankrate survey respondents planned to employ were looking for discounts, coupons and sales 41%; buying fewer gifts 40%; and purchasing from cheaper brands 21%. Meanwhile, a survey from Oracle Retail found that more than seven in 10 respondents are open to using store payment plans or financing options to pay for their holiday purchases.
According to Adobe’s research last year, the 2021 holiday season sales reached $204 billion between Nov. 1 and Dec. 31, an 8.6% bump from 2020. During Cyber Week 2021, online spending saw a 1.4% dip compared to 2020, but e-commerce sales increased 19.2% from 2020 in the weeks prior to Thanksgiving.
Last year, discounts and supply chain issues were a drag for retailers, and research suggests that retailers may face similar problems this year. A June survey from Publicis Sapient and Salesforce found that 44% of e-commerce-only retailers said they weren’t profitable compared to 20% of physical retailers.
