Adobe Reports Record U.S. Online Holiday Spending Despite Slower Growth Rate

Data released by Adobe Analytics on Wednesday revealed that while the year-over-year growth rate of U.S. online spending during the 2025 holiday season slowed, consumers still set a new spending record, driven by steep discounts and the widespread adoption of buy-now-pay-later options.

Adobe reported that from November 1 to December 31, U.S. online consumer spending increased by 6.8% compared to the previous year, reaching $257.8 billion; this contrasts with a growth rate of 8.7% during the same period last year.

The company stated that online sales for this holiday season surpassed the prior expectation of $253.4 billion.

Persistent high inflation and the economic ripple effects from President Trump's trade policies have made budget-conscious consumers more cautious about non-essential purchases, also putting pressure on the holiday sales growth rate.

The Cyber Week shopping period became a primary driver of spending growth: high-income consumers continued to spend, while promotional discounts and flexible payment methods attracted budget-focused shoppers to online retail.

"Fierce discount competition and flexible payment methods like buy-now-pay-later also drove spending to a record high," said Vivek Pandya, lead analyst at Adobe Digital Insights.

Adobe data shows that online spending facilitated by buy-now-pay-later services reached $20 billion this holiday season, a 9.8% increase from the previous holiday period.

The company noted that discount-driven demand boosted sales of higher-priced items such as electronics, sporting goods, and appliances. Adobe's analysis is based on direct online transaction data from U.S. retail websites and examines over one trillion website visits.

The data also indicated that the proportion of online shopping transactions completed on smartphones reached 56.4%, up from 54.5% during the same period last year.

Furthermore, visits to retail websites involving AI-powered shopping assistants and chatbots surged by 693.4%, although this growth was significantly lower than the staggering 1300% increase seen a year earlier.