US online holiday spending hits record levels despite slower growth, Adobe says
Jan 7 : U.S. online holiday spending growth slowed in the 2025 season, Adobe Analytics data showed on Wednesday, even as shoppers set a record on the back of steep discounts and wider use of buy-now-pay-later plans.
Online spending from November 1 through December 31 rose 6.8 per cent to $257.8 billion, Adobe said. That compared to an 8.7 per cent rise in online spending during the same period last year.
Adobe said spending beat its prior forecast of $253.4 billion in online sales for the season.
Inflation and the economic fallout from President Trump's trade policies have made budget-conscious shoppers more cautious about discretionary purchases, pressuring holiday sales growth.
Cyber Week powered much of the growth, with higher-income consumers continuing to spend, while bargains and flexible payment options drew budget-conscious shoppers online.
"Competitive discounts and flexible payment options like Buy Now Pay Later also contributed to driving record spend," said Vivek Pandya, lead analyst at Adobe Digital Insights.
BNPL accounted for $20 billion in online spend during the season, up 9.8 per cent from the prior holiday period, Adobe said.
Discount-driven demand lifted purchases of higher-ticket items including electronics, sporting goods and appliances, Adobe said. The company bases its estimates on direct online transactions and analyzes more than 1 trillion visits to U.S. retail websites.
Smartphones accounted for 56.4 per cent of online shopping transactions, up from 54.5 per cent a year earlier, Adobe said.
Retail sites also saw a 693.4 per cent jump in traffic tied to AI-powered shopping assistants and chatbots, Adobe said, after a 1,300 per cent increase in the prior year.
