Driven by demand for groceries and less-expensive discretionary items, Americans are increasingly turning to online shopping, boosting online retail sales by 7% from January to April of this year, according to Adobe data.
Inflation has caused consumers to search for lower prices, and as a result, the share of the cheapest items in categories such as personal care and groceries has grown this year while the share of the most expensive products has dropped. Total online sales between January and April amounted to $331.6 billion, compared with $309.8 billion during the same time last year.
“We are seeing consumers down-shift and spend more on the cheapest goods within a degree, that is helping categories stay resilient and see continued spending, but it also showcases that consumers are having to manage the inflation they’re experiencing in housing, gas and food,” said Vivek Pandya, Lead Insights Analyst for Adobe.
The largest increase has occurred in grocery spending, which grew by 15.7%. Adobe said it believes more than $500 billion will be spent in online shopping during the first half of 2024, a 6.8% year-over-year increase.
