This growth was particularly evident in the online retail domain where apparel purchases surged by 6.7%, while brick-and-mortar stores saw a modest increase of 0.2%.
Mastercard SpendingPulse’s preliminary data indicates that overall US retail sales, excluding automotive, climbed by 3.8% year-over-year. Notably, a significant portion of holiday spending, 10%, occurred in the final five days leading up to Christmas.
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Excluding automotive, online transactions expanded by 6.7%, and physical store sales saw a 2.9% rise.
Mastercard Economics Institute chief economist Michelle Meyer 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 labour market and household wealth gains.”
There was also a notable increase in expenditure on tangible goods; jewellery sales sparkled with a 4.0% increase.
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By GlobalDataA distinct preference for digital-first shopping experiences became evident this season, as consumers leaned towards e-commerce platforms, curbside pickups, and delivery services. Online retail sales ascended by 6.7% year-over-year, outpacing the in-store sales growth of 2.9%.
Certain urban centres demonstrated an especially robust embrace of online shopping with Tampa and Phoenix leading double-digit growth rates at 10.6% and 10.0% respectively.
Minneapolis (8.9%), Dallas (8.4%), Charlotte (7.9%), Orlando (7.8%), and Houston (7.6%) also surpassed the national average for e-commerce growth relative to the previous year.
Mastercard senior advisor and former CEO and chairman of Saks Incorporated Steve Sadove said: “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.”
Last month, the National Retail Federation’s chief economist Jack Kleinhenz stated expectations for a strong holiday sales period were intact following a robust third quarter and positive economic indicators.
