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Supply chain snarls clog U.S. online holiday sales growth

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© Reuters. FILE PHOTO – The congestion in the Port of Los Angeles can be seen in San Pedro (California, U.S.A), September 29th, 2021. REUTERS/Mike Blake

(Reuters) – U.S. consumers spent less online during holiday shopping than they expected. Adobe Analytics (NASDAQ:) data shows that this was due to supply chain problems, which caused delays and product shortages.

Adobe Analytics reported Wednesday that consumers spent an unprecedented $204.5 billion online during the holiday season 2021, which was 8.6% more than a year ago.

Adobe had expected the number to fall below $207 billion and it marked the first increase in holiday spending since 2014.

Data from Salesforce (NYSE) shows that congestion in ports, closures at Asian factories due to coronavirus, and shortages of truck drivers and shipping containers led to a 2% drop in holiday stock worldwide and U.S. by 2 percent.

Adobe’s analysis of more than a trillion U.S. shopping websites shows that shoppers received over 6 billion outof-stock messages online. This is more than three times the number seen before the pandemic.

Shopping for electronics was easy with early promotional offers that allowed shoppers to buy everything they wanted, including toys and games.

For example, consumer spending decreased 1.4% in Cyber Week (the period that runs from Thanksgiving to Cyber Monday).

Taylor Schreiner from Adobe Digital Insights, Senior Director, stated, “This holiday shopping season, big promotional moments such as Cyber Monday and Black Friday had less attention.”

Adobe data shows that online prices increased 3.1% in December. This is the 19th consecutive month with an increase. Discounts on electronics, sporting goods, and other categories were reduced during the entire season.

Rob Garf is vice president and general manger of retail at Salesforce and said that the rise in holiday sales was largely due to rising costs and higher discounts.

Garf explained that “Consumers are buying less items at higher prices at fewer stores.”

 

 

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