Online spending reached an impressive $1.2 trillion worldwide during the recent holiday period, marking a 3% increase compared to the previous year. In the United States, sales rose by 4% to approximately $282 billion. These figures were collated by Salesforce, which analysed data from its various cloud services—including Agentforce, Commerce Cloud, Marketing Cloud, and Service Cloud—covering the shopping behaviour of 1.5 billion consumers across multiple countries from November 1 to December 31, 2024.
While these results reflect a robust holiday shopping season, they did fall somewhat short of Salesforce's earlier predictions, which estimated a 2% year-on-year growth to $1.19 trillion. Notable highlights from the shopping period included record-breaking sales on key shopping days: Black Friday witnessed a 5% growth, reaching $74.4 billion, while Cyber Monday sales climbed by 3% to $49.7 billion. Additionally, Thanksgiving brought in $33.6 billion globally, marking a 6% increase.
However, these positive spending figures are tempered by a significant increase in product returns, which Salesforce forecasts could overshadow total sales figures. The report highlighted that consumers have already returned $122 billion worth of merchandise, an increase of 28% from last year. Projections suggest this could rise to $133 billion, a situation that Salesforce director of consumer insights, Caila Schwartz, described as “a cause for concern.”
Despite the challenges posed by a high volume of returns, Schwartz noted that other dynamics could mitigate potential revenue losses, particularly through advancements in artificial intelligence (AI) technology. Salesforce states that AI innovations are poised to fundamentally reshape retail, promising enhanced operational efficiency and elevated customer engagement through personalised shopping experiences. The report indicated that AI and agents collectively influenced holiday spending to the tune of $229 billion via targeted promotions and bespoke customer support, showing an increase of 6% year-on-year. The uptake of AI-powered customer service also saw a significant rise of 42%.
“Retailers who have embraced AI and agents are already seeing the benefits, but these tools will be even more critical in the new year, as retailers aim to minimize revenue losses on returns and reengage with shoppers,” Schwartz claims.
The conversation around AI in retail highlights a broader trend within the industry, pointing to an increased reliance on emerging technologies, as businesses strive to adapt to changing consumer behaviours and market dynamics. As AI continues to evolve, its role in underpinning business practices is expected to grow, potentially redefining the shopping experience in the years to come.
Source: Noah Wire Services