U.S. retail sales, excluding automotive, grew 3.8% year-on-year during the holiday season, according to preliminary data reported by Mastercard SpendingPulse.
Mastercard: US Holiday Season Retail Sales Grew 3.8%
The payments giant said in a release Thursday that it indicates a consumer base willing to spend, albeit with a focus on value.
The data aligns with Visa’s recent holiday spending report, which recently reported a 4.8% year-on-year increase in holiday retail spending across the United States.
Mastercard said online shopping remained a strong preference, with sales increasing 6.7% year-over-year.
“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,” said Michelle Meyer, Chief Economist at Mastercard Economics Institute. “Solid spending underscores the strength we observed from the consumer all year, supported by the healthy labor market and household wealth gains.”
Key trends are said to have included a surge in spending during promotional periods like Black Friday, with the final five days of the season accounting for 10% of total holiday expenditure.
Restaurant spending increased by 6.3%, while key gift categories like apparel, jewellery, and electronics also saw growth.
E-commerce continued to dominate, with online sales outpacing in-store sales, increasing by 6.7% and 2.9%, respectively.
MasterCard said apparel led the way in online growth. Cities like Tampa and Phoenix experienced double-digit digital growth, exceeding the national average.
“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,” said Steve Sadove, senior advisor for Mastercard.
