What: Global holiday shopping hits record levels with $74.4 billion in online sales, while increased in-store visits and AI adoption demonstrate evolving consumer behavior across multiple shopping channels.

Why it is important: This multi-channel success reveals a fundamental shift in retail, where digital innovation and physical retail experiences are no longer competing but complementing each other to drive overall growth.

The 2024 holiday shopping season has demonstrated remarkable strength across both digital and physical channels, with global online sales reaching $74.4 billion, marking a 5% year-over-year increase. Consumer behavior shows increasing sophistication in channel usage, with in-store visits growing to 126 million from 121.4 million in 2023, while maintaining strong digital engagement. Technology played a pivotal role in this year's success, with 38% of consumers utilising AI tools for deal-hunting and retailers adopting AI-driven pricing strategies. Mobile commerce continued its dominance, accounting for 55% of online spending and showing a 12.1% year-over-year increase. The season also revealed evolving promotional strategies, with retailers moving away from traditional mass discounts toward more precise, targeted approaches that better serve both digital and in-store shoppers.

IADS Notes: The 2024 holiday shopping season demonstrates significant evolution in retail dynamics, with global Black Friday online sales reaching $74.4 billion, marking a 5% year-over-year increase. This growth reflects a sophisticated hybrid shopping pattern, as consumers embrace both digital and physical channels, evidenced by in-store visits growing to 126 million from 121.4 million in 2023. The increased adoption of AI technologies has transformed the shopping experience, with 38% of consumers utilising AI tools for deal-hunting, while retailers leverage AI-driven pricing strategies to navigate inflationary pressures. Consumer behavior continues to evolve in response to extended promotional periods, with retailers moving away from traditional mass discounts toward more precise, targeted approaches. The dominance of mobile commerce, accounting for 55% of online spending with a 12.1% year-over-year increase , underscores the growing consumer comfort with digital shopping platforms. This multi-faceted growth, combining strong online performance with increased in-store visits, suggests retailers' successful adaptation to changing consumer preferences through strategic use of technology and omnichannel approaches.

The holiday shopping spirit is still alive – consumers are spending!