Online Spending Trends: New Holiday Hotspots and Consumer Behavior Shifts

The Bank of America Institute report highlights how online retail spending is increasing, particularly among lower-income households, as shoppers seek convenience and deals. This shift has impacted traditional brick-and-mortar holiday shopping, with in-person spending on Black Friday and Christmas Eve declining. Cyber Monday has gained popularity, accounting for a larger share of holiday spending. Lower-income households increasingly favor online shopping, while higher-end malls remain more resilient, reflecting varied consumer behaviors based on income levels.

Here are the key takeaways from the report:

1. Growth in Online Spending: Online shopping continues to grow, especially during the holidays, with Cyber Monday becoming increasingly popular.

2. Shifts in Consumer Behavior: Lower-income households are driving the trend towards online shopping, seeking convenience and deals.

3. Impact on Brick-and-Mortar: Traditional in-store holiday shopping days like Black Friday are seeing a decline in foot traffic.

4. Mall Resilience: Higher-end malls remain more resilient, attracting wealthier shoppers despite the online shift.

For more details, refer to the full report.