US Holiday Retail Sales Exceed Expectations with 3.8% Growth

Mastercard SpendingPulse reports a robust shopping season driven by online sales and value-focused consumers.

Total retail sales from November 1 to December 24 rose 3.8% year-over-year, surpassing Mastercard's forecast of 3.2% growth.
Online shopping saw a significant 6.7% increase, outpacing the 2.9% growth in in-store sales, as consumers sought deals during key promotional periods like Black Friday and Cyber Monday.
Spending on apparel, jewelry, and electronics grew by 3.6%, 4%, and 3.7%, respectively, with restaurants showing a 6.3% increase as experiences remained a popular choice.
The last five days of the holiday shopping season accounted for 10% of total spending, reflecting a surge in last-minute purchases.
Retailers leveraged promotions, improved digital experiences, and technologies like AI to cater to value-driven shoppers, while a strong labor market supported consumer spending.