Adobe Analytics predicts online sales will grow 5.3% this holiday season, down from 8.7% last year, as consumers turn to deal days and buy now, pay later (BNPL) apps to fuel their spending in an uncertain economic climate.
One of the biggest upticks from last year is in the concentration of spending around sales events. The five-day period including Thanksgiving, Black Friday, and Cyber Monday are expected to drive nearly one-fifth of sales (17.2%), up from 6.3% last year.
Yet the focus on deal days comes even as retailers hold steady on discount rates—and many consumers look for more than just the lowest price.
But that doesn’t mean consumers won’t borrow money to fund their purchases; BNPL is set to drive $20.2 billion in online spending, which is up 11% year over year, according to Adobe.
BNPL providers such as PayPal are doing their part to drive this demand with new offerings such as 5% cash back on BNPL purchases through the end of the year.
