Online Holiday Sales Likely to Slow
Although online holiday spending is forecast to rise 5.3% this year, it’s likely to be slower than the 2024 season (CNBC).
What’s going on: Last year “online sales rose 8.7% from Nov. 1 to Dec. 31,” according to an Adobe Analytics report released this week.
- The growth expected this November and December is also below the 10-year average of about 13% annually.
Good news: “The holiday season is one of the areas where [consumers] do feel much more of an onus and a drive to get the goods they need,” Vivek Pandya, Adobe’s director of digital insights, told CNBC. “We’re seeing them willing to spend and capitalize on these sales moments.”
- He called the expected increase “pronounced growth.”
However … Higher online sales might not mean a rise in overall holiday sales.
- Retail sales have continued at a good clip so far this year, “but concerns about higher prices from tariffs and dipping consumer confidence have complicated the outlook for the critical shopping season.”
- Consumers said they intend to spend about 5% less on holiday travel, gifts and entertainment this year, according to a PwC survey cited by CNBC.
How they’ll shop: Phones and tablets are expected to be the “primary driver for online shopping,” with purchases made on mobile devices likely to account for 56.1% of online spending. That’s up from 40% during the 2020 holiday season.