- U.S. retail and food services sales rose 0.6% in November 2025 and 3.3% year over year, with nonstore (online) retail among the strongest categories at over 7% annual growth.
- Holiday-driven categories like sporting goods and apparel gained while department stores and furniture weakened.
- U.S. holiday e-commerce in Nov–Dec 2025 reached about $258B (+6.8% YoY), supported by discounts, mobile shopping, BNPL growth and surging generative-AI-driven traffic.
- In-store spending still made up roughly 73% of holiday payment volume, but online sales grew much faster as shoppers blended channels and prioritized value.
Read More
Data for November 2025 confirms that U.S. retail strength during the holiday buildup was uneven but decidedly tilted toward online and nonstore channels. Headline figures from the Census Bureau show total retail and food services sales rose 0.6% month-over-month in November, with a 3.3% year-over-year gain, despite ongoing economic headwinds including inflation and labor constraints. Nonstore retail emerged as one of the strongest performers: up roughly 0.4% MoM and exceeding 7% YoY growth, placing it among the fastest-growing retail segments.
Gift and seasonal spending held up well. Categories tied directly to holiday purchases—sporting goods, hobby, musical instruments and books—jumped nearly 8% YoY and nearly 2% MoM. Apparel and accessories posted solid gains, while electronics & appliance were flat month-to-month but ahead year-to-year by about 2.7%. In contrast, department store sales dropped sharply (~2.9%) and furniture/home furnishings slipped slightly.
Broad holiday season trends (Nov 1-Dec 31, 2025) further illuminate consumer behavior. Online retail holiday sales totaled ~US$257.8B (Adobe), up ~6.8% YoY, with electronics, apparel, and furniture accounting for over half of this growth. Generative AI tools boosted traffic dramatically (~693% YoY according to Adobe) and buy-now, pay-later (BNPL) reached ~$20B in online spend, up near 9-10% compared to a year earlier.
In-store still commands greater absolute share—about 73% of holiday payment volume per Visa—but online grew much faster, consuming value as consumers blend channels. They started earlier, hunted promotions, used digital tools heavily, and prioritized value over impulse. For many retailers, especially those lagging in digital infrastructure or those heavily dependent on department-store formats or furniture/home goods, the risk is falling behind as consumers shift more decisively to nonstore and mobile-first shopping.
Strategic implications are multifold: retail players must invest in omnichannel capabilities, especially in seamless online + in-store experiences; rapid adoption of AI-driven personalization and retailer-controlled agentic tools may yield higher conversion; payment flexibility (BNPL etc.) remains a differentiator; and inventory and discounting strategies require finesse, as consumers are increasingly comparison-shopping.
Open questions include whether nonstore growth will continue its pace in 2026, how margin pressures from discounting and BNPL fees play out, and how inflation and interest rates impact lower-income consumers’ ability to shop online (considering shipping costs, returns etc.). Also, what share of online gains are coming from existing retailers vs pure e-commerce natively online firms or marketplaces?
Supporting Notes
- Total U.S. retail and food services sales rose 0.6% MoM in Nov ’25; up 3.3% vs Nov ’24.
- Nonstore retailers grew ~0.4% MoM in Nov ’25 and over 7% YoY; among fastest-growing subcategories in 2025.
- Sporting goods, hobby, musical instruments & book stores jumped ~1.9% MoM and ~7.8% YoY. Clothing/accessories up ~0.9% MoM; electronics & appliance up ~2.7% YoY but flat MoM.
- Department stores down ~2.9% MoM; furniture & home furnishings slightly down MoM and YoY about −1.4%.
- Holiday e-commerce (Nov-Dec ’25) reached ~$257.8B, +6.8% YoY (Adobe); Salesforce logs ~$294B, ~4% growth.
- Generative AI tools drove a ~693% YoY increase in traffic to retail websites; BNPL online spending ~$20B, up ~9-10% YoY.
- Visa data: 73% of holiday payment volume came from in-store purchases; online grew ~7.8%; electronics up ~5.8%.