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US holiday retail sales up by 3.8% as consumers prioritised value

Jan 3, 2025 United States

US retail sales rose by 3.8% year-over-year from November to Christmas, according to Mastercard Spending Pulse, as consumers prioritised getting the best deal and digital-first shopping

“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 Mastercard Economics Institute. “Solid spending during this holiday season underscores the strength we observed from the consumer all year, supported by the healthy labour market and household wealth gains”.

From the 1^st of November to the 24^th of December, US retail sales, excluding automative, increased by 3.8% over the same period last year; the last five days of the holiday season accounted for 10% of all holiday spending. Mastercard SpendingPulse measures in-store and online retail sales, representing all payment types, and is not adjusted for inflation.

The results show that consumers have increasingly embraced digital-first shopping, with e-commerce, home delivery and curbside pickup at the top of their list for the festive season. Online retail sales grew by 6.7% year-over-year, while in-store sales increased by 2.9%.

Apparel, jewellery and electronics saw a spending growth of 3.6%, 4.0% and 3.7%, respectively, as compared to the previous holiday season. The apparel sector was a strong leader in e-commerce sales, with online purchases up by 6.7% year-over-year. Consumer experiences also strengthened, with spending on restaurants rising by 6.3% year-over-year.

“This holiday season, we saw consumers motivated by deals and retailers respond with promotions to meet the demand. The value-minded consumer showed up to shop at brick-and-mortar stores and e-commerce platforms, with retailers managing across both to capture attention throughout the season”, concluded Steve Sadove, senior advisor for Mastercard and former CEO and chairman of Saks Incorporated.

Image Credits: chainstoreage.com

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