US retail sales during the holiday season, spanning Nov. 1 to Dec. 24, rose by 3.8%, surpassing the 3.1% growth from the previous year and beating Mastercard’s September forecast of a 3.2% increase. This growth was fueled by aggressive promotions and value-driven messaging from major retailers, prompting a surge in last-minute shopping.
Key Highlights
- Final Days Impact: The last five days of the season accounted for 10% of total holiday spending, showcasing a rush of consumer activity during peak promotional periods.
- Retailer Strategies: Major players like Walmart and Amazon intensified promotions to stay competitive, while low-cost e-commerce platforms like Shein and Temu offered enticing deals during Black Friday and Cyber Monday.
Consumer Trends
- Value-Oriented Spending: Consumers demonstrated a willingness to spend but were highly driven by the search for value, as noted by Michelle Meyer, chief economist at Mastercard Economics Institute.
- E-commerce Growth: Online sales grew by 6.7%, outpacing the 6.3% rise recorded last year. Apparel emerged as a particularly strong-performing category.
About the Data
The data, provided by Mastercard SpendingPulse, measures both in-store and online retail sales across all payment types but excludes automotive sales.
The results underline the adaptability of retailers in a competitive market and the resilience of consumer spending, even amidst economic uncertainties.
