Adobe: Black Friday online shopping spending will reach $9.8 billion in 2023, a year-on-year increase of 7.5%

U.S. shoppers will spend $12.4 billion online on Cyber ​​Monday, according to Adobe, which revised up its initial forecast of $12 billion based on stronger-than-expected spending on Black Friday and the popularity of buy now, pay later features that allow shoppers to stretch their budgets with credit.

Adobe's latest data shows that e-commerce consumers spent $8.3 billion online. The company analyzed that the peak consumption period is usually between 10 and 11 p.m.

Monday’s spending will cap a record five days of online shopping: Black Friday spending reached $9.8 billion, up 7.5% from a year ago. Thanksgiving spending was $5.6 billion, up 5.5%, according to Adobe data released earlier Monday. Adobe expects total spending from Thursday to Monday to reach $38.1 billion, up from its previous forecast of $37.2 billion.

Flexible spending options, including buy now, pay later, have helped shoppers stretch their budgets. From Nov. 1 to Nov. 26, consumers took advantage of such promotions to spend $7.3 billion, up 14% year-over-year, according to Adobe, highlighting how credit can help retailers stimulate spending.

The news comes after a strong Thanksgiving weekend for U.S. retailers, which generate a large portion of their sales and profits during the annual shopping holiday. U.S. shoppers spent $10.3 billion online on Saturday and Sunday, up 7.7% from a year earlier. Analysts are closely watching this year's holiday shopping to assess the staying power of U.S. consumers as savings have dwindled during the pandemic and interest rates remain at more than 20-year highs.

“The uncertain demand environment prompted retailers to offer deep discounts during the quarter while also strengthening their e-commerce offerings with flexible payment options,” said Vivek Pandya, principal analyst at Adobe Digital Insights. “Consumers spent at a record pace during the holiday shopping season despite the rising cost of living elsewhere.”

The S&P 500 retail index rose less than 1% on Monday. Shopify Inc. shares rose as much as 5.2% after the Ottawa-based e-commerce company said its merchants set a Black Friday record with $4.1 billion in total sales.