As the holiday season drives a significant surge in online shopping, its effects are felt far beyond doorstep packages and gift wrappings. What could this digital shift mean for our country’s economic growth, standard of living, and ultimately the future of retail purchasing?
Online holiday sales set a new record in 2024, amassing $241.4 billion– that’s approximately a 9% increase in sales during the holiday season, November 1 – December 31, since last year, and a shocking 28.4% increase since 2020 according to Adobe Analytics. This online spending alone equates to U.S. consumers spending more than $4 billion online in a single day 15 days this year, surpassing last year’s 11 days. U.S. online holiday sales in 2024 surpassed Adobe’s projections of $240.8 billion, with overall US online holiday sales growing a record 8.7%
If you thought numbers in the US were shocking, think again. Globally, online holiday sales in 2024 reached $1.2 trillion, contributing to the annual 3% growth worldwide. The 2024 holiday spending season can be described as one thing– online. These sales not only exceeded this year’s expectations, but grew at the fastest rate since the pandemic.
What does this mean for the economy? First, we must define the metric we’re using. Our country’s economic state of being is measured by Gross Domestic Product, otherwise known as GDP– it’s the sum of all final goods and services produced within the US in one calendar year.
GDP Per Capita is a measure of GDP, aiming to identify a country’s standard of living. Currently, US GDP per capita is $81,695. Essentially, this means that the value of our country’s economic output per person is optimal, and therefore so is the health of our economy. In this context, we’re evaluating the impact that consumer spending has on GDP, otherwise the US economy. This means that a $241.4 billion increase in consumer spending serves as a large contributor to our country’s economic well-being.
During the holidays, we as Americans have observed one of the busiest and costly seasons yet for our country. Additionally, the rise of online shopping as a main buying source since the beginning of the decade raises the possibility of a significant decrease in small business activity in small towns. Small business closure can mean a number of negative things for a small town, from widespread unemployment and decreased tax revenue, however, it’s up to the next couple of years for us to truly gauge these losses.
