Mastercard (NYSE: MA) SpendingPulse has unveiled that savvy consumers and e-commerce are fueling U.S. holiday retail sales growth by 3.9% year over year. Getting a strong early start, consumers have now seemingly embraced convenience and connection through the season, blending online and in-store purchases and dining out as part of new consumer behavior trend.
According to preliminary insights from Mastercard SpendingPulse, U.S. retail sales excluding automotive increased “3.9% year-over-year from November 1 through December 21.”
Mastercard SpendingPulse reportedly aims to “measure in-store and online retail sales representing all payment types and is not adjusted for inflation.”
Michelle Meyer, chief economist, Mastercard Economics Institute said:
“Consumers demonstrated flexibility and confidence this season, shopping early, leveraging promotions, and investing in meaningful experiences and wish-list items. They also blended online and in-store shopping to find the best deals and maximize convenience.”
With a few shopping days to go, these key trends have shaped the 2025 holiday season:
- Savvy shoppers sought value online and in stores: Consumers didn’t just hunt for deals, they shopped smart across channels, with many combining in-store visits with online browsing to secure the best promotions and maximize convenience. E-commerce sales surged +7.4%, while in-store sales grew +2.9%, underscoring the convergence of blended shopping experiences.
- A season of style with some sparkle: Apparel spending climbed +7.8% as chilly temperatures and seasonal deals likely encouraged wardrobe refreshes and gift giving. Consumers embraced an omnichannel approach, with online sales up +8.5% and in-store sales also rising +7.0%, browsing online for inspiration and price comparisons, then heading in-store to try on and purchase items. Jewelry also rose by +1.6% as shoppers strategically purchased sparkly gifts.
- Dining out as a holiday ritual: Restaurant spending grew +5.2%, highlighting consumers’ continued appetite for experiences and shared moments during the festive season. From celebratory dinners to casual outings, dining out has become an integral part of holiday traditions, signaling that consumers value connection along with tangible gifts.
As businesses accelerate AI investment, adoption is already “shaping consumer experiences.”
Mastercard Economics Institute’s AI Enthusiasm Index in the Economic Outlook 2026 highlights the U.S. as a global enabler and supporter of AI investment and adoption – a trend that reportedly influences “everything from personalized shopping recommendations to smarter inventory management.”
These advancements now aim to help retailers deliver the convenience and value consumers sought this festive season.
Looking ahead to 2026 and beyond, deeper AI integration now aim to make shopping more seamless and experiential, thus helping with “reinforcing the omnichannel behaviors.”