Online holiday sales rose 4.9% YoY as consumers took enthusiastic advantage of heavy discounts

The news: Heavy discounting spurred sales this holiday season, with shoppers spending a record $222.1 billion online between November 1 and December 31—a 4.9% increase year-over-year (YoY), per Adobe Analytics.

• A separate report by Mastercard SpendingPulse found a 3.1% YoY increase in holiday spending, with online sales growing nearly three times as fast (6.3% YoY) than in-store sales (up 2.2% YoY).

By the numbers: The majority of consumers’ online spending—$123.5 billion—took place in November, bolstered by considerable promotions in the lead-up to and during Cyber Week. But shoppers continued to spend in December, enticed by the prospect of further deals as retailers like Target extended their sales events.

• Shoppers’ enthusiasm resulted in a record 11 days with over $4 billion in daily spend this holiday season, Adobe Digital Insights’ lead analyst Vivek Pandya said.
• The electronics category was the biggest winner this year, accounting for nearly one-quarter of overall sales ($50.8 billion), likely due to record-high discounts of up to 31%. Collectively, the electronics, apparel ($41.5 billion), furniture ($27.3 billion), grocery ($19.1 billion), and toy ($7.7 billion) categories accounted for 65% of total spending.
• Mcommerce reached a new milestone, accounting for over half (51.1%) of online sales as shoppers turned to their smartphones to quickly take advantage of last-minute deals.

The big takeaway: The strong end to the year shows that easing inflation and the still-healthy labor market are buoying consumer confidence despite broader financial pressures, including high interest rates and the resumption of student loan payments.