Online shopping fueled a stronger-than-anticipated holiday retail season, according to Mastercard SpendingPulse data. Total retail sales, excluding automotive, saw a 3.8% year-over-year increase from November 1st through December 24th, surpassing the projected 3.2% growth. This performance also outpaced the 3.1% increase recorded in the previous year.
This positive outcome was largely attributed to the significant growth in e-commerce, with online sales surging by 6.9% compared to the same period in 2023. Conversely, in-store sales experienced a more moderate increase of 2.9%. Mastercard’s data further revealed that a notable 10% of all holiday purchases occurred within the final five days leading up to Christmas.
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The robust performance indicates a resilient consumer base willing to spend, particularly when presented with attractive deals and promotions. “The holiday shopping season revealed a consumer who is willing and able to spend but driven by a search for value as can be seen by concentrated e-commerce spending during the biggest promotional periods,” commented Michelle Meyer, Chief Economist at the Mastercard Economics Institute. This suggests that retailers who offered compelling discounts and promotions likely benefited the most.
Specific sectors also witnessed notable growth. Jewelry sales sparkled with a 4% year-over-year increase, while electronics experienced a healthy 3.7% rise. The apparel segment also performed well, registering a 3.6% increase in sales.
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The overall positive trend in holiday retail sales underscores the continued importance of online channels in driving consumer spending. The data highlights the effectiveness of promotional strategies in influencing purchasing decisions and provides valuable insights for retailers as they plan for future seasons. The strong finish to the year suggests continued momentum in consumer spending heading into the new year. However, economic factors and potential shifts in consumer behavior will remain key considerations for retailers in the months ahead.
