Holiday Spending: Tech and Clothes Lead the Way

This holiday season, Americans continued to spend despite economic challenges, with a notable increase in purchases.

Key Findings

• Overall Growth: Total spending rose by 4.2% compared to last year.
• Categories: Tech gadgets and clothing saw significant increases.
• Shopping Methods: Physical stores dominated, but online shopping grew the fastest at 7.8%.

Shopping Trends

• AI Influence: Nearly half of shoppers used AI for price comparisons and gift selection, marking a significant shift in consumer behavior.
• Spending Shifts: Increased spending on personal items like electronics and clothing, while home improvement saw a decline.

Category Performance

• Electronics: Sales up by 5.8%, driven by AI-compatible gadgets.
• Clothing & Accessories: Sales increased by 5.3%.
• Home Improvement: Spending dropped by 1%, with furniture sales up only 0.8%.

Inflation Impact

• Real Growth: After adjusting for inflation, spending increased by about 2.2%, indicating cautious but deliberate spending.

Consumer Behavior

• Intent vs. Action: Many planned to spend less but ultimately spent more, highlighting a disconnect between intention and action.
• Cost Awareness: High costs are making consumers more selective with their purchases.