What: Global holiday retail sales exceed expectations with 3% growth to USD 1.2 trillion, driven by AI adoption, mobile commerce, and strategic discounting.

Why it is important: The results highlight the growing importance of AI and mobile commerce in retail success, while revealing evolving consumer preferences for technology-enhanced shopping experiences.

The 2024 holiday shopping season demonstrated remarkable resilience, with global sales reaching USD 1.2 trillion, surpassing earlier forecasts. U.S. retail sales showed particular strength, growing 4% year-over-year, while online sales increased 8.7% to USD 241.4 billion. Mobile commerce played a crucial role, with 54.5% of transactions occurring on smartphones. AI technology significantly influenced shopping behaviors, with tools and digital agents affecting USD 229 billion in global online sales. However, consumers remained value-conscious, concentrating e-commerce spending during major promotional periods and increasing their use of credit options. The season also saw a 28% rise in returns to USD 122 billion, suggesting potential challenges for retailer profitability despite strong top-line growth.

IADS Notes: The strong 2024 holiday retail performance reflects broader transformation in consumer behavior and retail technology. December 2024 data shows record-breaking results across both digital and physical channels, culminating in Salesforce's January 2025 report of USD 1.2 trillion in online shopping. This success was significantly driven by technology adoption, with December 2024 projections of U.S. retail sales reaching USD 1 trillion supported by widespread AI integration. The growth was geographically diverse, as evidenced by Visa's December 2024 report of increased spending across multiple markets. A key factor in this success was consumer adoption of AI shopping tools, with November 2024 data showing 38% of shoppers using AI for deal-hunting.

US Consumers splurged during the holidays…with some caveats