U.S. Holiday Spending Smashes Records 🪅

Happy New Year! 🎉

Welcome to this week’s edition of CartHustle! From record-breaking U.S. holiday sales to innovation in point-of-sale systems and the evolving world of crypto, there's plenty to catch up on.

Read on for insights into the key drivers behind mobile shopping, AI’s impact on consumer behavior, and the growing significance of stablecoins in finance. Let’s jump in!

ECOMMERCE TRENDS

U.S. Online Sales Hit $241.4 Billion During Holidays

Ecommerce sales in the U.S. reached a record $241.4 billion during the 2024 holiday season, an 8.7% increase over the previous year, according to Adobe’s final data. Mobile shopping, generative AI, and strategic discounts shaped consumer behavior.

Key Highlights

• Mobile Dominance:

  • 54.5% of transactions were made on smartphones, up from 51.1% in 2023.

  • 65% of purchases on Christmas Day occurred via mobile.

• Generative AI's Impact:

  • Chatbots drove a 1,300% increase in site traffic compared to 2023.

  • Cyber Monday saw chatbot-driven traffic surge by 1,950%.

  • Consumers used AI tools to find deals (20%), locate items (19%), and get brand recommendations (15%).

• "Buy Now, Pay Later" Growth:

  • Usage hit $18.2 billion, up 9.6% from 2023.

• Category Leaders:

  • Electronics: $55.3 billion (+8.8%).

  • Apparel: $45.6 billion (+9.9%).

  • Furniture/Home Goods: $29.2 billion (+6.8%).

Retailers who embraced AI tools and mobile-friendly platforms capitalized on consumer preferences, setting the stage for continued ecommerce innovation in 2025. Discounts and flexible payment options also drove higher-value purchases.

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RETAIL PAYMENTS

Brick-and-Mortar Renaissance Spurs POS Innovation

Brick-and-mortar retail is making a strong comeback, redefining how businesses approach the shopping experience. After years of pandemic-driven online dominance, consumers are returning to stores, fueling a need for merchants to innovate their point-of-sale (POS) systems.

In-Store Shopping Resurgence

• 43% of U.S. consumers now prefer shopping in physical stores.

• 19% use digital tools like pricing comparisons and product reviews while in-store.

• Visa reports 77% of holiday spending occurred in stores, with retail spending up 4.1% year-over-year during the 2024 holiday season.

Younger shoppers are driving demand for seamless online-to-offline experiences. Retailytics founder Bellamy Grindl notes, “Technology like interactive displays and mobile checkouts can turn routine visits into memorable moments.”

• SoftPOS technology enables tablets and phones to accept contactless payments. Nearly 25% of merchants expect mobile POS to replace traditional systems.

• Tap-to-pay usage is surging:

  • 54% of U.S. in-person transactions were contactless in 2024 (Visa).

  • Globally, 70% of payments are contactless (Mastercard).

Innovative Tools on the Rise

• Fiserv’s Clover Suite: Portable devices like Flex Pocket enable transactions throughout stores.

• GoDaddy’s Smart Terminal Flex: Compact POS fits in an employee’s apron pocket for mobility.

Merchants embracing modern POS solutions are poised to meet consumer expectations for fast, flexible, and tech-enhanced shopping experiences.

ECOMMERCE SOCIAL MEDIA

DOJ Opposes Trump’s TikTok Ban Delay Request

The U.S. Department of Justice (DOJ) has urged the Supreme Court to reject President-elect Donald Trump’s request to delay a law requiring TikTok’s Chinese parent company, ByteDance, to divest its U.S. operations by January 19, 2025, or face a nationwide ban.

Key Details

• The Law: Passed in April 2024, it addresses concerns about national security tied to TikTok’s data collection practices.

• Trump’s Request: Filed last week, it seeks more time to explore a political resolution after his inauguration on January 20.

• Supreme Court Hearing: Scheduled for January 10.

DOJ's Argument

• The DOJ warns TikTok’s data access for its 170 million U.S. users poses a “grave threat” due to potential espionage by China.

• National security risks make immediate enforcement of the law essential.

TikTok’s Defense

• TikTok claims the law violates the First Amendment, targeting its content rather than data practices.

• Other Chinese-owned apps like Shein and Temu were not similarly restricted, suggesting bias.

If the Supreme Court doesn’t intervene, new TikTok downloads will be banned, and existing services may degrade over time.

The case highlights ongoing tensions between Washington and Chinese tech firms, with the Supreme Court’s decision pivotal for TikTok’s future in the U.S.

RETAIL TRENDS

UK Retail Store Traffic Drops 2.5% During Holiday Season

UK retailers faced a challenging holiday shopping season in 2024, with foot traffic declining for the second consecutive year. The British Retail Consortium (BRC) and Sensormatic reported a 2.5% drop in footfall during the three months ending Dec. 28, and a 2.2% decrease over the full year.

Key Holiday Traffic Insights

• High streets and shopping centers were hit hardest:

  • High street footfall fell 2.7%.

  • Shopping center visits declined 3.3%.

• Retail parks remained steady, offering free parking and larger store options.

• Boxing Day shopping saw a 10.1% decline on high streets and a 6.1% drop at shopping centers, attributed to a shift toward eCommerce and the UK’s cost-of-living crisis.

• Compared to pre-COVID levels, foot traffic remains 22.7% lower.

Retail Challenges in 2024

• Stagnant sales due to high energy costs and low consumer confidence.

• Unseasonably mild weather, reducing winter apparel sales.

• Consumers holding out for Black Friday discounts.

Andy Sumpter of Sensormatic urged retailers to focus on innovative strategies to reverse the decline or optimize sales from fewer visitors.

“Making every store visit count” will be vital for UK retailers aiming to navigate 2025’s economic and consumer landscape.

ECOMMERCE CRYPTO

This Week in Web3 Innovation: Crypto Policies, Payments, and Stablecoins

Bitcoin soared above $100,000 in 2024, marking a milestone in its mainstream adoption. As we head into 2025, experts predict bitcoin could hit $200,000. However, the growth story isn't just about prices—it’s about the ongoing transformation of Web3 technologies in global finance.

Key Highlights:

• Regulation has shifted from crypto's hurdle to a catalyst. In 2024, the SEC approved bitcoin ETFs, boosting prices. Meanwhile, the MiCA regulation in Europe offers a clearer framework for crypto companies.

• Cross-border payments are transforming, with blockchain offering transparency, speed, and cost efficiency.

• Stablecoins are becoming a bridge between traditional finance and digital currencies, with platforms like Wirex and Frax Finance integrating new stablecoins.

In the Middle East, Crypto.com partnered with Dubai Islamic Bank, signaling crypto’s growing global influence. Meanwhile, Tether faced a market decline due to new EU crypto regulations, while FalconX expanded into the derivatives market by acquiring Arbelos Markets.

As crypto adoption continues to evolve, the focus shifts toward real-world utility, improving transparency and efficiency in the financial landscape.

Signing off,

The Merchant @CartHustle