Consumers want more for their money this holiday season and are relying more heavily on discounts and trading down online for lower-priced items, according to early seasonal data from e-commerce protection services provider Signifyd.
U.S. e-commerce sales for the first two weeks of October gained 3% over the period a year earlier, according to Signifyd’s Holiday Season Pulse Tracker. The gain comes after U.S. e-commerce sales increased 8% in September year over year with the Home Goods and Decor category up 7%. The category, as defined by Signifyd, was fifth of 10 in terms of gains in September, trailing Grocery, up 32%; Luxury Goods, up 16%; Leisure and Outdoor, up 9%; and Fashion, Apparel and Luggage, up 8% year over year. Up 4% in the first half of October, Home Goods and Decor ranked fourth as to year-over-year gains after Grocery, up 24%; Fashion, Apparel and Luggage, up 8%; and Leisure and Outdoor, up 5%.
Digital shoppers placed more orders of slightly lesser value in the first two week of October than they did in September 2023, Signifyd maintained. Taken together, the company added, the numbers show that consumers are ready to spend at the right price.
Among the conclusions in Signifyd’s E-Commerce Pulse report:
- Online, grocery and apparel led the way, but electronics saw a notable decline in year-over-year sales.
- Discount use in early October jumped 22% versus the same period in 2023, an indication that shoppers would stick with their value-focused shopping this holiday season.
- During the first two weeks of October, 32% of online sales were accompanied by a discount code, up 22% year over year.
“It’s no surprise that we continue to see consumers hunting for bargains as the holiday shopping season begins,” said Signifyd senior data analyst Phelim Killough. “That said, the growth in discount code usage is pretty dramatic. Retailers can expect shoppers to be value-oriented throughout the holiday season, looking for deals and trading down for less expensive items.”
