According to preliminary insights from Mastercard (NYSE: MA) SpendingPulse, U.S. retail sales excluding automotive increased 3.8% YoY from Nov 1 through Dec 24.
Mastercard SpendingPulse reportedly measures in-store and online retail sales, representing “all payment types and is not adjusted for inflation.”
Michelle Meyer, chief economist, Mastercard Economics Institute said:
“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. Solid spending during this holiday season underscores the strength we observed from the consumer all year, supported by the healthy labor market and household wealth gains.”
Key retail trends for the full holiday season included:
- The most ‘valuable’ time of the year – Empowered consumers sought value at every turn this year, responding to promotions during the November and Black Friday shopping period, and filling their baskets in the run-up to December 24. Overall retail sales saw a 3.8% increase compared to 2023, with the last five days of the holiday season accounting for 10% of all holiday spending.
- A balanced basket – Consumer demand for experiences like dining out strengthened in the holiday season, with Restaurant spending growth up 6.3% compared to last year. Additionally, this season saw an increase in spending growth on goods compared to last year, with Apparel (3.6%), Jewelry (4.0%) and Electronics (3.7%) as notable sectors for gift-giving.
- Clicking all the way – Consumers increasingly preferred digital-first shopping this year, with e-commerce, curbside pick-up and delivery being top-of-mind for the festive season. Online retail sales grew 6.7% year-over-year, whereas in-store sales increased 2.9%. Notably, the Apparel sector showed a strong lead in e-commerce sales, with 6.7% growth for online purchases compared to last year.
- Digital-savvy shopping cities – While many Americans shop online for the holidays, there are some cities in particular that have embraced e-commerce. Cities like Tampa (10.6%) and Phoenix (10.0%) lead with double digital growth followed by Minneapolis (8.9%), Dallas (8.4%), Charlotte (7.9%), Orlando (7.8%), and Houston (7.6%) coming in well above the national total for e-commerce sales compared to 2023.
Steve Sadove, senior advisor for Mastercard and former CEO and chairman of Saks Incorporated:
“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.”
As noted in the update, Mastercard SpendingPulse measures national retail sales based on aggregated and anonymized Mastercard insights, representing all payment types in select markets around the world.
Mastercard SpendingPulse defines “U.S. retail sales” as sales at retailers and food services merchants of all sizes.
Sales activity within the services sector (for example, travel services such as airlines and lodging) are “not included in the total retail sales figure.”
As clarified in the update, SpendingPulse insights are said to be “not indicative of Mastercard company performance; insights and forecast are subject to change.”
As covered, Mastercard powers economies and empowers people in 200+ countries and territories worldwide.
Together with customers, they’re focused on building a “sustainable economy where everyone can prosper.”
They support a range of digital payments choices, “making transactions secure, simple, smart and accessible.”
Their tech and innovation, partnerships and networks combine to deliver a set of products and services that “help people, businesses and governments realize their greatest potential.”
