Online holiday spending growth set to slow to 5.3% as shoppers seek discounts

CNBC
CNBC
3M ago
Online holiday spending in the U.S. is projected to increase by 5.3% to $253.4 billion, despite a slowdown from last year's growth.
Online holiday spending growth set to slow to 5.3% as shoppers seek discounts
A What happened
Adobe Analytics forecasts that online holiday spending in the U.S. will increase by 5.3% year-over-year, reaching $253.4 billion. This marks a slowdown from the previous year's 8.7% growth and is below the 10-year average of approximately 13%. Despite economic uncertainties, consumers are expected to spend more during the holiday season, driven by a desire for discounts and the habit of stockpiling goods. However, overall holiday sales growth may be modest, with predictions of a 4% increase across both online and in-store sales. A survey by PwC indicates consumers plan to spend about 5% less compared to last year, particularly among Gen Z shoppers. Adobe anticipates that Cyber Week will be a peak spending period, accounting for 17.2% of online sales. Mobile devices are expected to dominate online shopping, and the use of AI-powered chat services for product research is projected to rise significantly.

Key insights

  • 1

    Slower Growth Expected: Online spending growth is projected to slow compared to previous years.

  • 2

    Mobile Shopping Dominance: Mobile devices will account for over half of online holiday spending.

  • 3

    AI Traffic Surge: AI-powered shopping assistance is expected to see a significant increase in usage.

Takeaways

Overall, while online spending is set to grow, economic factors may limit overall holiday sales growth.

Topics

Technology & Innovation Artificial Intelligence Business & Markets Markets Retail & E-commerce

Read the full article on CNBC

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