Market Monitor: Online Retail
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Market Monitor: Online Retail
Making the right decisions for your business starts with having the most accurate and current information available. Our Online Retail Market Monitor keeps you up to date on the events, trends, and market forces that shape and guide the industry.
U.S. Online Holiday Sales See Strong Growth with 8.7% YoY Increase in 2024
U.S. online holiday sales surged by 8.7% year-over-year (YoY) in 2024, marking the largest growth since 2020. This increase was driven by consumer demand for higher-ticket items, such as sporting goods, appliances, and electronics, with the availability of substantial discounts throughout the shopping season.
Key Holiday Shopping Stats for 2024
- Mobile Shopping Dominates: Around 55% of purchases during the 2024 holiday season were made via smartphones, underscoring the growing importance of mobile commerce.
- Top-Selling Categories: Electronics, apparel, and furniture & home goods together accounted for over half of the holiday sales, with each category seeing YoY growth between 7%-10%.
- Personalized Shopping Experiences: The use of artificial intelligence (AI) and algorithms significantly increased in 2024. Retailers created hyper-personalized shopping experiences, similar to how streaming platforms recommend content. This shift resulted in higher customer satisfaction and loyalty, with 52% of consumers preferring personalized offers based on their data.
M&A Activity and Future Outlook
Mergers and acquisitions (M&A) activity remained steady from 2023 to 2024, with just under 100 deals reported annually. However, as we move into 2025, M&A activity is expected to rise due to a more favorable regulatory environment, increased investor confidence, and hundreds of billions of dollars in uncommitted capital.
For more information or questions, please contact our contributors:
Rich Anderson, Managing Director: [email protected]
Tyler Dale, Managing Director: [email protected]
Johnny Sherwood, Director: [email protected]