This holiday season is shaping up to be a happy one for retailers, with the number of shoppers hitting stores from Thanksgiving Day to Cyber Monday setting a new record.

The National Retail Federation said that 196.7 million people shopped in-person at retailers from Thanksgiving Day to Cyber Monday, Nov. 28. That’s the highest this figure has ever been.

Online sales boomed, too. Adobe Analytics reported that online shoppers spent a record $9.12 billion on Black Friday, the day after Thanksgiving. That figure is up from $8.92 billion in 2021 and $9.03 billion in 2020.

These record-setting numbers come despite the threat of rising interest rates and persistent inflation. Why the big numbers? That’s difficult to say, but consumers have continued to spend even as the prices of everything from groceries and gas to electronics, clothing and furniture continue to rise.

Big Day for Online Sales

The Black Friday online sales were particularly impressive. Adobe Analytics said that the online sales of electronics rose 221% on Black Friday when compared to an average day in October of this year. Two of the biggest sellers were Apple MacBooks and Apple watches, according to Adobe. Consumers also spent big on the Xbox Series X gaming console and video games such as FIFA 23 and Pokemon Scarlet.

Adobe predicted that online shoppers would spend an additional $4.52 billion on Saturday and $4.99 billion on Sunday of the holiday weekend. Adobe also predicted that online sales would soar to $11.2 billion on Cyber Monday.

In-person Shopping Strong, Too

The National Retail Federation did not track the amount of money that record-setting number of in-person shoppers spent over the Black Friday weekend. The trade association did say that it expects holiday sales to rise by 6% to 8% from last year. If this happens, consumers will have spent from $942.6 billion to $960.4 billion this holiday season.

Of course, some of the increase in spending must be attributed to high inflation: Consumers are paying more when they are buying holiday items this year.

“The Thanksgiving holiday shopping weekend is a tradition treasured by many American families,” said National Retail Federation president and chief executive officer Matthew Shay, in a written statement. “As inflationary pressures persist, consumers have responded by stretching their dollars in any way possible. Retailers have responded accordingly, offering shoppers a season of buying convenience, matching sales and promotions across online and in-store channels to accommodate their customers at each interaction.”

According to the National Retail Federation, the holiday shopping season runs from Nov. 1 through Dec. 32. The federation said that consumers spent an average of about $325 on holiday purchases from Thanksgiving Day through Cyber Monday. Last year, shoppers spent an average of $301.

Black Friday/Cyber Monday Sales Shatter Records

Another Black Friday in the books. Gone are the days, it seems, of waking up at 5 a.m. to get a jump on the day’s deals, but that doesn’t equal less activity. In fact, 2022 saw the highest numbers in a while.

The National Retail Federation estimated that 166 million people shopped from Thanksgiving through Monday, the highest estimate since 2017, but reports concerning consumers’ weekend spending vary.

The Sun Times reported that shoppers carried on as they usually would, without regard to inflation or a looming recession, many even increasing spending. Residents in Chicagoland have estimated they’ll spend around $719, compared to $580 in 2021.

And the holiday hype checks out—no pun intended.

The last few years have been strange, to say the least, but as we continue to regain a sense of normalcy this season, shoppers have taken advantage by starting early. The Sun Times and Accenture found that of 1,500 Americans, 45% admitted to starting to shop in August.

But the forward-thinking mentality isn’t limited to consumers. Proactive retailers also seized the opportunity to kick start their in-store deals weeks—even months—in advance, especially those in areas that have struggled to regain foot traffic post-pandemic, and the strategy has proven successful thus far.

Shoppers swarmed Chicagoland from Michigan Avenue to Old Orchard in Skokie to Woodfield Mall in Schaumburg, and many people reported it was the largest in-person turnout they’d seen in a while. More than 122.7 million people across the U.S. visited brick-and-mortar stores over the weekend, up 17% from 2021, according to the National Retail Federation.

Welcome news for businesses of all sizes. Mainstream chains like J. Crew, Neiman Marcus, and J.C. Penney were not spared from pandemic suffering, after all.

“It is important to note that while some may claim that retail sales gains are the result of higher prices, they must acknowledge the historic growth in consumers who are shopping in-store and online during the holiday weekend and into Cyber Monday,” said NRF President and CEO Matthew Shay. “It is consumer demand that is driving growth.”

The group predicted the rise of holiday sales by 5% YOY and retailers will pocket 6% to 8% more than in 2021. Nationwide spending in November and December will near $960 billion, according to the Sun Times.

Another sign that the hotel industry is on the mend? The number of holiday travelers this year who plan to stay in hotels is on the rise, according to the Hotel Booking Index Survey from the American Hotel & Lodging Association.

The survey, conducted by Morning Consult, also says that hotels are cited as the top lodging choice among those who say they are certain to travel for leisure in the next three months.

The lodging association’s Hotel Booking Index (HBI) is a new composite score gauging the short-term outlook for the hotel industry. The 1-through-10 score is based on a weighted average of survey respondents’ travel likelihood in the next three months (50%), household financial security (30%) and a preference to stay in hotels for travel (20%). Based on the results of the survey, the AHLA Hotel Booking Index for the next three months is 7.1, or very good.

The survey found that the share of those who plan to stay in hotels during their holiday travels this season is on the rise. According to the results, 31% of Thanksgiving travelers plan to stay in a hotel during their trip, compared to the 22% who planned to do so last year. A total of 28% of Christmas travelers plan to stay in a hotel during their trip, compared to 23% who planned to do so last year. Among those absolutely certain to travel for leisure in the next three months, 54% say that they plan to stay in a hotel, according to the survey.

The survey didn’t bring only holiday cheer, however. The lodging association reported that overall holiday travel levels will likely remain flat, with 28% of Americans reporting they are likely to travel for Thanksgiving and 31% likely to travel for Christmas this year – compared to 29% and 33%, respectively, in 2021.

The survey also found that concerns about COVID-19 are fading among travelers but are being replaced by economic challenges like inflation and high gas prices. The survey found that 85% percent of respondents reported that gas prices and inflation are factors they are considering when deciding whether to travel during the next three months. That compares to 70% who said the same about COVID-19 infection rates.

The survey of 4,000 adults was conducted Oct. 14-16. Other key findings:

59% of adults whose jobs involve travel said they are likely to travel for business in the next three months, with 49% among them planning to stay in a hotel during their trip. In 2021, 55% of adults whose jobs involve travel said they were likely to travel for business during the holiday season.
64% of Americans would be concerned about delays or cancellations if they traveled by plane right now, with 66% of these respondents reporting a lower chance of flying this holiday season as a result.
61% of Americans say they are likely to take more leisure/vacation trips in 2023 than they did this year.
58% of Americans are likely to attend more indoor gatherings, events or meetings in 2023 than they did this year.
66% of Thanksgiving travelers and 60% of Christmas travelers plan to drive to their destinations, compared to 24% and 30%, respectively, who plan to fly.
“This survey bolsters our optimism for hotels’ near-term outlook for a number of reasons,” said AHLA president and chief executive officer Chip Rogers, in a statement. “The share of holiday travelers planning hotel stays is rising, plans for business travel are on the upswing and hotels are the number-one lodging choice for those certain to travel for leisure in the near future. This is great news for our industry as well as current and prospective hotel employees, who are enjoying more and better career opportunities than ever before.”