The rush of holiday shopping—there's nothing quite like it, right?
The holiday shopping season in the United States typically kicks off in October and extends through December. While the season begins early, most consumers wait until late November or December to do the bulk of their shopping. Whether online, offline, or via BOPIS (buy online, pick up in-store), customers try their best to find and buy their must-have items before they’re out of stock.
Key sales events like Thanksgiving, Black Friday, and Cyber Monday, which fall during these months, offer enticing deals that encourage many consumers to finalize their long-awaited shopping lists.
According to a report released by the National Retail Federation (NRF), the total online retail sales in the US during the 2023 holiday season totaled $955.6 billion, marking a 3.7% increase compared to 2022. For 2024, the total holiday spending is predicted to surpass $979 billion attaining a growth between 2.5% to 3.5% over the last year.
Source: National Retail Federation
According to recent Salesforce data, total global online holiday sales have already reached $1.2 trillion in 2024, with U.S. consumers accounting for $282 billion. Similarly, the NRF’s latest report estimates total online and non-store sales to fall between $295.1 billion and $297.9 billion, closely aligning with Salesforce's figures.
It's no surprise that the holiday season consistently sparks excitement among shoppers. With a strong job market and wage growth in the U.S. in 2024, the healthy economy has undoubtedly boosted consumer confidence, encouraging increased spending during the holiday period.
Adobe Analytics’ 2024 Holiday Shopping Trends report highlights the sales figures for key holidays. Thanksgiving saw $6.1 billion in sales, while Black Friday and Cyber Monday generated $10.8 billion and $13.3 billion in 2024, respectively.
In addition to increased consumer spending, a key factor driving the record-breaking holiday sales was the surge in mobile and AI usage. Retailers use the power of generative AI through AI chatbots, virtual agents, and shopping assistants to personalize the consumer experience. These technologies recommend products based on users' previous purchases and browsing history, identify the best deals and discounts, and deliver exceptional customer service to enhance the overall shopping experience.
Mobile apps fueled by AI-driven chatbots and virtual assistants enabled seamless, frictionless transactions, driving record sales and enhancing consumer satisfaction. According to Adobe Analytics, mobile sales accounted for $146 billion, combining both direct and BNPL transactions, which is nearly 60% of total holiday spending. Salesforce data also aligns closely, reporting that 69% of all transactions were made via mobile devices.
Generative AI agents like chatbots and virtual assistants have contributed almost 19% of the total holiday sales worldwide, 6% more than the previous year (2023). Also, the usage of these agents has increased by 25% during the holiday months compared to September and October in 2024.
In my previous article, Retail Trends 2025, part of G2's 2025 digital trends series published in October, we predicted that AI in retail would take time to reach maturity. At that point, many retailers had yet to see a strong ROI from AI systems, largely because these systems struggled with contextual understanding when recommending products or assisting with customer service.
However, this holiday season’s record-breaking sales, driven in part by AI agents, clearly demonstrate significant progress in retail AI. This shift underscores how AI-powered solutions have evolved, with software vendors continuously refining their systems and introducing advancements, such as Agentforce by Salesforce, to serve the needs of retailers better.
Additionally, traffic to G2’s categories, such as Mobile E-Commerce, AI Sales Assistants, Chatbots, and AI Chatbots, has been consistently high from October to December 2024. Mobile e-commerce software has gained traction among retail businesses seeking to complement their existing e-commerce websites with a dedicated mobile app. This category has seen almost a 45% increase in user reviews within the last five quarters, validating the growing reliance on mobile and AI technologies to drive retail success during peak shopping periods.
The 2024 holiday season underscored the pivotal role of mobile and AI technologies in driving record-breaking retail sales. AI-powered chatbots, virtual assistants, and mobile e-commerce platforms enhanced the shopping experience, fueling a surge in mobile transactions. The growth in AI and mobile usage during the holidays highlights their increasing importance in shaping the future of retail and delivering personalized, seamless experiences.
AI in retail: hype or game-changer? Let's uncover the truth.
Edited by Monishka Agrawal
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