Holiday consumers set a new online spending record, seeking bargains despite financial concerns

Holiday Online Shopping Hits New Highs Despite Economic Concerns

(Justin Sullivan / Getty Images)

Shoppers showed strong enthusiasm during the recent holiday season, taking advantage of attractive discounts even as worries about inflation and economic growth lingered.

According to Adobe, online sales reached an unprecedented $257.8 billion as consumers snapped up deals on electronics, sports equipment, and home appliances.

Adobe Analytics, a San José-based company that tracks digital transactions, reported that U.S. online spending from November 1 to December 31 surged by nearly 7% compared to the previous year. These figures offer insight into how economic factors are shaping e-commerce trends.

Despite ongoing concerns about inflation, tariffs, and job cuts, consumers continued to spend—especially on Cyber Monday, which saw a record $14.25 billion in online purchases.

Many buyers also looked forward to deeper discounts during Black Friday and Thanksgiving sales events.

“We noticed a significant increase in spending during those key days, particularly as shoppers became more price-conscious,” said Vivek Pandya, director of Adobe Digital Insights.

Major savings on big-ticket items like electronics, furniture, and appliances contributed to the overall boost in holiday spending.

Some customers scored electronics at up to 30% off and used flexible payment options to buy items such as smartphones, paying for them over time.

The growing use of AI-powered chatbots and the popularity of shopping via social media platforms meant that technology played a larger role in helping consumers discover products and discounts.

“Shoppers were still willing to make purchases if they felt the price was right,” Pandya added.

Adobe observed more people shopping on their smartphones and using AI chatbots to research products and hunt for bargains. Purchases originating from AI-driven sources converted at higher rates than those from traditional channels.

AI tools proved especially useful for researching higher-priced goods like electronics and appliances, where comparing features is important.

What Shoppers Bought

Consumers spent more on items such as video games, smartwatches, refrigerators, and other high-value household goods, while also picking up affordable items like puzzles and festive decorations.

Popular toys included Lego Icons sets, "Wicked" dolls, gaming consoles, and video games.

Top tech products featured the Apple Watch Series 11 and Ray-Ban Meta smart glasses, according to Adobe’s findings.

Spending on electronics alone reached $59.8 billion, marking an 8% increase from the previous year.

Regional and Economic Trends

While Adobe does not provide state-level data, other research indicated that consumer spending in California was expected to rise. A KPMG survey found that many shoppers planned to spend more to avoid higher prices later due to inflation.

In the Pacific region—which includes California, Oregon, Washington, Hawaii, and Alaska—about 72% of respondents cited inflation as their main concern last year.

Economists have described the U.S. economy as “K-shaped,” highlighting the gap between wealthier households, who are spending more, and lower-income groups, who remain cautious with their finances.

Bank of America reported in December that higher-income households saw both their after-tax earnings and spending rise by 2.6% year-over-year, while lower-income groups increased their spending by just 0.6%.

Pandya noted that online shoppers have traditionally been more affluent, but many now view online shopping as a way to easily compare prices and find better deals without visiting physical stores.

He expects that consumers may continue to spend during major retail events like Valentine’s Day or Mother’s Day, when special offers are available.

“These events could motivate continued spending,” Pandya said. “We’ll have to see what the data for January reveals.”