US holiday sales – from November 1st to December 24th – grew by 3.8% compared to the same period last year, says Mastercard SpendingPulse.
Strong e-commerce and targeted promotions have been the main drivers, underscoring US consumers’ resilience despite economic headwinds.
Strong Holiday Sales Highlight Consumer Resilience
Online and offline (in-store) sales rose by 6.7% and 2.9%, respectively. Even though the figure for in-store sales was much lower, it remained significant.
This growth reflects a consumer base that remains willing to spend, supported by factors such as a healthy labor market and household wealth gains.
Holiday Sales: Key Pending Trends
- Promotional Shopping Periods
Black Friday and the days leading up to December 24 saw strong consumer activity, with notable spending spikes during the last five days.
- Sector Highlights
Apparel, jewelry, and electronics were standout categories, growing by 3.6%, 4%, and 3.7% respectively.
With restaurant spending surging by 6.3%, it appears that US consumers have a strong preference for experiences alongside gift purchases.
E-Commerce Continues to Dominate
Since the advent of the Internet, there has been a gradual shift from offline to online shopping, from brick-and-mortar shops to retail websites. This year has been no exception, with e-commerce sales far outpacing in-store growth.
Cities like Tampa and Phoenix led the charge, recording double-digit online sales growth well above the national average. A growing number of consumers opted for home deliveries and curbside pickups.
According to Mastercard SpendingPulse:
“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 in online purchases compared to last year.”
Brick-and-Mortar Stores Remain Relevant
As mentioned earlier, in-store shopping underwent a healthy resurgence, although the growth was not as impressive as that of e-commerce. Consumers seem to, once again, embrace the social aspect of walking into stores and visiting malls.
Mall operators reported increased foot traffic, with many shoppers enjoying the holiday atmosphere and using shopping trips as opportunities to spend time with family and friends.
Gift cards, clothing, and *accessories were among the most popular purchases in physical stores.
* Accessories typically refer to items that complement or enhance an outfit or serve as additional items to a primary product, such as handbags, belts, scarves, hats, sunglasses, gloves, jewelry, phone cases, and other decorative or functional items that add style or utility.
Retailers Respond to Value-Minded Consumers
These holiday sales saw a surge of value-driven consumers in the US. Walmart, Amazon, Target, and other major retailers ramped up promotions to attract shoppers.
Sellers also leveraged advanced technologies, such as generative AI, to enhance customer service and streamline online shopping experiences.
Despite overall positive sales trends, challenges remained. Department stores, such as Macy’s, Nordstrom, and JCPenney, underperformed, and some retailers faced difficulties, as highlighted by recent bankruptcy filings from companies like The Container Store.
A Bright Outlook Amidst Economic Uncertainty
These robust holiday sales figures bode well for the US retail sector. They underscore the strength of the country’s consumers and their adaptability both online and in-store.
Whether the recent offline retail comeback is a temporary blip or the beginning of a longer-term trend remains to be seen. Only time will tell.
