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According to new information on Thanksgiving spending, more holiday shoppers are delaying paying their bills with buy-now-pay-later apps, even financing less expensive items.
According to Adobe, spending on these apps increased 1.3% over Thanksgiving, but Salesforce data shows a 6% decline in the average order value for purchases made through these apps.
Apps for “buy-now, pay- later,” such as Affirm, Afterpay, and Klarna According to Rob Garf, vice president of retail at Salesforce, “started as a way to finance bigger ticket items but have morphed into everyday purchases and for lower priced gifts as consumers think about the economy and their personal finances.”
Retailers are also increasing their markdowns; according to Salesforce, the average markdown has increased to 31% from 29% last year.
According to Adobe, which studies online consumer transactions, toy discounts were among the highest, peaking at 34% off the listed price, followed by 24% off on electronics and computers and 14% off on apparel and appliances.
On November 24, online demand for strollers increased 133% compared to the daily sales average in October, while demand for outdoor grills increased 131%. According to Adobe, demand for speakers and cameras increased by 122% and 111%, respectively.
On Nov. 24, consumer spending increased overall by 9% to $7.5 billion compared to the same day last year, but Garf pointed out that “much of that growth is driven by price increases not people buying more products.” “Inflation is causing shoppers to buy fewer items.”
According to Adobe, Black Friday spending will increase by a “modest” 1% to $9 billion.
According to advertising technology firm Captify, which monitors more than 1 billion searches per day from websites worldwide, Walmart is outpacing Amazon this year in searches for Black Friday deals, according to a CNBC report.
What do you think of that negative trend? Please let us know in the comments.