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October 06.2025
2 Minutes Read

Online Holiday Spending Growth Slows: Discounts Drive Consumer Choices

Woman shopping online on phone, relaxed on couch, online holiday shopping trends.

Holiday Spending Expected to Slow: What Shoppers Want

The holidays are fast approaching, and while enthusiasm for shopping is high, there's a notable shift in how consumers are approaching their holiday budgets. According to a recent report by Adobe Analytics, online holiday spending in the U.S. is projected to grow by 5.3% this year, totaling $253.4 billion. However, this represents a slowdown from the previous year, where online sales surged by 8.7% during the same holiday season.

Vivek Pandya, Adobe's director of digital insights, notes that consumers are becoming more price-conscious, looking for discounts and deals as inflation and economic uncertainties linger. The surge in online shopping is now largely dictated by consumers' desire to find value during a time they feel compelled to give gifts and celebrate the season.

Discounts Over Brand Loyalty: The New Shopper Mindset

This year, a staggering 68% of holiday shoppers prioritize deals over brand loyalty, according to a survey conducted by Parent Tested Parent Approved. With tighter budgets, particularly noted among parents, consumers are seeking less expensive options. They prefer to stretch their dollars as far as possible, relying heavily on promotions to guide their purchasing decisions, whether that means shopping earlier or looking to discount retailers.

The Role of Technology and AI in Holiday Shopping

Interestingly, this trend is also marked by the increasing use of technology during the shopping process. Shoppers are not just browsing stores; they are utilizing artificial intelligence-powered chatbots and tools to enhance their shopping experience, helping streamline choices and optimize their spending.

Understanding the Current Economic Landscape

Despite the anticipated growth in online spending, it’s projected that overall holiday sales, including brick and mortar, may only rise by 4% year over year. A survey shows that consumers plan to spend about 5% less this season compared to last year. Such dynamics emphasize the ongoing impact of inflation on purchasing power.

Ultimately, while sales gains are being observed, they may not reflect a true increase in consumer spending volume but rather a reaction to economic realities. Whether through discounts, early shopping, or the use of tech tools, understanding these trends is vital for brands aiming to connect with a value-driven consumer base this holiday season.

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