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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.
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Key insights
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1
Slower Growth Expected
Online spending growth is projected to slow compared to previous years.
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2
Mobile Shopping Dominance
Mobile devices will account for over half of online holiday spending.
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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.