Retailers’ Trends Sag as Grinch Steals Holiday Spend

Key Takeaways:

• Per Sensor Tower estimates, its cohort of 44 retailers saw YoY download growth in the US of 24% over the 5-day Black Friday weekend (Thanksgiving - Cyber Monday), while DAU growth decelerated significantly, up only 3.5% YoY in 2022

• Consumer electronics (Best Buy and Apple) and home furnishings (Bed Bath & Beyond, Overstock and Wayfair), both big winners during the pandemic, saw the largest drops in DAUs on both Black Friday and Cyber Monday

• Download growth remained positive across different time periods, including Black Friday, Cyber Monday and the months of October and November on a YoY basis

• October and November YoY MAU growth for the largest retailers (comprise 65% of retail cohort MAUs), including Amazon, Walmart and Target, collectively fell 9% and 12%, respectively, a negative for retail as a whole

• Deceleration in downloads and DAUs of the Amazon app during its second 2022 Amazon Prime Day in October relative to 2020 highlights consumers’ changing shopper behavior as more money shifts to necessities versus discretionary items, which is a majority of Amazon’s product assortment

• Overall CY4Q MAU growth for the retail cohort could face a significant slowdown based on Sensor Tower’s current 4Q projections, which include estimates for December

• Macroeconomic uncertainty remains key headwind for retailers’ top line growth in FY4Q and 2023

• 3Q22 earnings commentary across retail sector indicate consumers across income brackets are trading down, have become increasingly price sensitive, and are slowing purchases of higher margin discretionary items

For more information, request the full report from reports@sensortower.com.