Unwrapping the 2024 holiday season revealed a number of noteworthy trends in the retail industry. These include insights into overall sales, popular gifts, consumer purchase habits and what tomorrow’s retail store might look like.
Data from the U.S. Census Bureau revealed that core retail sales during the 2024 holiday season grew 4 percent over 2023 to a record $994.1 billion, according to the National Retail Federation. Sales for the full year grew 3.6% over 2023 to a record $5.28 trillion. Consumer demand for experiences like dining out strengthened in the holiday season, with restaurant spending growth up 6.3% compared to last year. The purchases of cars, clothes and electronics helped boost sales.
According to Adobe Analytics, top selling items in the electronics category, included TVs, Bluetooth headphones/speakers, smart watches and fitness trackers. In apparel, puffer/fleece jackets, boots, purses/crossbody bags and socks were top sellers. In the furniture/home category, holiday decor, bedding/linen sets, storage solutions, accent chairs and throw pillows/blankets were popular. Top toys this season included LEGO sets, cardboard games, stuffed animals and dolls.
The steady fall in inflation, continued economic growth and positive job reports led to strong consumer spending over the holiday season and point to positive retail growth in 2025. Additionally, consumers were driven by promotions and price cuts along with amenities such as buy online pick up in-store (BOPIS), curbside pickup and buy now, pay later (BNPL).
“This holiday season, we saw consumers motivated by deals and retailers respond with promotions to meet the demand,” and Steve Sadove, senior advisor for Mastercard. “The value-minded consumer showed up to shop at brick-and-mortar stores and e-commerce platforms, with retailers managing across both to capture attention throughout the season.”
The growth of mobile buying continued to rise throughout the holiday season. Consumers set a record for e-commerce, spending $241.4 billion online from November through December, up 8.7% year-over-year. Holiday e-commerce also saw an uptick in mobile use, according to Adobe, 54.5% of online shopping transactions were conducted on a smartphone, compared with 51.1% in the same period in 2023.
“The 2024 holiday season showed that e-commerce is being reshaped by a consumer who now prefers to transact on smaller screens and lean on generative AI-powered services to shop more efficiently,” said Vivek Pandya, lead analyst, Adobe Digital Insights. “It presents opportunities for retailers to deliver new services and experiences that capture the attention of consumers, many of whom are now shopping online in different ways.”
The increasing popularity of online shopping has impacted brick-and-mortar stores, pushing them to adapt their strategies and technology to integrate online and offline experiences. According to Newmark Research, more consumers prefer click-and-collect purchases and in-store returns. Traditionally, stores serve as places to sell goods and promote brands through physical and visual presence. Now, with 24/7 access to retailers via digital platforms, brick-and-mortar locations are dedicating more space to returns and equipping associates with advanced in-store technology to reintegrate returned items into the logistics network.
Retailers are also capitalizing on strategies not available online such as an enhanced customer experience and in-store exclusives where items are only sold at brick-and-mortar locations. The in-store exclusive tactic has long been used by Record Store Day, where independent record store owners and employees celebrate the culture of record stores and sell items only available at a physical store.
Target experimented with the in-store model over the holiday season where they partnered with Taylor Swift to launch an exclusive pair of products that sold first in stores on Black Friday and later were available online. This same sales tactic was also used for the Omega X Swatch MoonSwatch Collection which were only available for purchase at selected Swatch stores worldwide and then slowly rolled out online.
The outlook for retail in 2025 remains strong after a robust closure in spending in 2024. Policy changes surrounding tariffs, inflation and employment could play a key role in growth throughout the year. Moving forward, retailers will look to build deeper brand identity and loyalty, while seeking consumers who are looking for meaningful connections with their purchases. Additionally, retailers will need to continue adapting, updating and enhancing the physical store to meet the demands of the consumer.
