The 2024 holiday shopping season started off strong, with deep discounts and strategic promotions fueling record ecommerce sales during the key Cyber 5 period.
Online sales during the five days — from Thanksgiving through Cyber Monday — reached $41.1 billion, up from $38 billion in 2023, according to Adobe Analytics data. Brands like Collars & Co. and Carve Designs reported double-digit sales growth during the period, fueled by new promotions, gifting, and more.
Adobe’s analysis is based on over 1 trillion visits to U.S. retail sites, tracking 100 million SKUs across 18 product categories. It includes data from more than 85 of North America’s top 100 online retailers, as ranked in Digital Commerce 360’s Top 1000. The database ranks the region’s largest online retailers by ecommerce revenue.
Collars & Co. sees 30% Cyber 5 sales boost
Promotions were a driving force during Cyber 5, especially on Cyber Monday. A Digital Commerce 360 panel of Top 1000 retailers found that 90% ran Cyber Monday promotions, up from 65% in a control period two weeks earlier. Of those surveyed, 91.7% focused on Cyber Monday-specific deals, while 7.1% extended Black Friday offers, and another 7.1% tied promotions to Christmas.
Collars & Co. kicked off its Black Friday promotions two days earlier than in 2023. The apparel retailer also introduced a special presale, offering exclusive deals to its top customers before launching the broader Black Friday promotions, according to founder Justin Baer.
The offerings helped drive strong results, with Cyber 5 sales rising over 30% year over year, Baer shared in an email to Digital Commerce 360. He added that Giving Tuesday – the day after Cyber Monday – was “particularly exceptional,” with sales up 100% over last year’s figures.
Despite concerns that the promotions might lower average order value, Baer reported average order value (AOV) stayed consistent, exceeding expectations.
“Our promotional strategies and new product offerings resonated strongly with our customers,” he said. “The heightened engagement across our online platforms contributed significantly to our sales growth during the Cyber 5 period.”
Crate & Barrel: Driving engagement through promotions and personalization
Crate & Barrel also saw a strong consumer response from promotions as customers continue to seek deals, said Alicia Waters, president of Crate & Barrel and Crate & Kids.
The retailer added a free shipping promotion this season for orders over $49, which was a lower threshold than in previous years, Waters told Digital Commerce 360. Crate & Barrel is now running the promotion for an extended period during the holidays.
While the company did not disclose specific Cyber 5 sales figures, Waters said website conversion rates rose significantly year over year. An early access holiday event also nearly doubled Crate & Barrel’s app downloads, which positively impacted sales.
“On the technology side, we launched a new app earlier this year, which features more personalization and seamless integration with our stores to deliver a better shopping experience,” Waters said. “This year, customers also had early access to ‘sneak peek’ shopping experiences through the app.”
Additionally, Crate & Barrel’s Design Desk service, which combines 2D and 3D technology to help shoppers visualize spaces, saw increased use during the holidays.
“This true omnichannel service meets customers where they are, offering the flexibility to shop however they prefer,” she stated.
AI powers holiday sales growth
Retailers also leaned on generative AI tools this holiday season, underscoring the technology’s growing adoption.
According to Adobe, Cyber Monday traffic to retail sites from AI-powered chatbots surged 1,950% from the year prior, reflecting their growing role in helping shoppers find deals and products quickly.
Likewise, Salesforce reported a 32.2% year-over-year increase in AI-powered chatbots during the Cyber 5. The CRM provider said it also powered nearly 60 billion AI-powered product recommendations across the period, showing 21% year-over-year growth.
Attentive, an AI-powered mobile marketing platform, shared specific results as well. Its clients – including Crate & Barrel – saw double the revenue growth of brands not using its AI during the eight-day shopping period from Monday, Nov. 25, to Cyber Monday, Dec. 2.
“This highlights the technology’s pivotal role in customer engagement and retention with impactful and personalized shopping experiences during the year’s busiest retail moment,” Attentive said in a statement.
Gifting drives engagement and growth during Cyber 5
Gifting also remained a top priority for shoppers during Cyber 5. A Numerator survey of 9,600 shoppers found that 93% purchased gifts during the period, with 67% saying more than half — or all — of their purchases were gifts. Notably, 30% reported buying only gifts.
Carve Designs, which reported an impressive 48% uptick in Cyber 5 sales from last year, capitalized on this trend with its “gift finder” quiz.
The women’s swimwear brand saw a 10% higher completion rate for the quiz during Cyber 5, along with a 130% boost in conversion rates compared to the previous period, according to Megan Porteous, vice president of ecommerce at Carve Designs.
“This underscores its value as a tool to guide and engage customers effectively during high-traffic shopping times,” she said in an email shared with Digital Commerce 360.
Carve Designs also ran a gift-with-purchase promotion, offering a free hat for orders over $200. The campaign incentivized purchases and boosted average order value, Porteous said.
“As we gear up for the holiday season, we plan to apply the insights and strategies that worked well during Cyber 5 to our end-of-year sales,” she said. “This includes leveraging tools like a quiz if relevant, ensuring we have compelling promotions, and being ready with backup levers like GWPs to drive sales and engagement.”
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