Online holiday spending rises nearly 9%, as deep discounts and AI-powered chatbots fuel purchases, Adobe data says

Online Spending Growth - Online spending during the holiday season (Nov 1 to Dec 31) increased by 8.7% year-over-year, reaching $241.4 billion [1] - The growth was driven by increased demand rather than higher prices, as e-commerce prices have fallen for 27 consecutive months [2] - Deep discounts played a significant role, with a 1$2.25 billion in online spending [5] Retail Industry Performance - The strong e-commerce results are a positive sign for the retail industry, with major retailers like Walmart, Target, and Macy's set to report their fiscal Q4 results in late February [3] - Overall U.S. retail sales (excluding automotive) for the holiday season (Nov 1 to Dec 24) rose 3.8% year-over-year, according to Mastercard SpendingPulse [4] Consumer Behavior Trends - Consumers are adopting an "event-ized buying" pattern, waiting for sales events like Amazon Prime Day, President's Day, and Memorial Day to make nonessential purchases [6] - Shoppers tend to overindex their spending during specific moments when they perceive value, leading to growth spikes followed by periods of slower growth [7] Top Performing Categories - Electronics, apparel, and furniture/home goods were the top three categories, contributing to 54% of total online spending [8] - Groceries saw the highest year-over-year growth at nearly 13%, reaching $21.5 billion, followed by cosmetics at 12.2$7.7 billion [8] - Electronics had the highest discounts at 30.1%, followed by toys (28%), TVs (24.2%), and apparel (23.2%) [7]