Dive Brief:
- U.S. retail sales for the last few weeks leading up to Christmas 2024 excluding automotive increased by 3.8% compared to last year, according to Mastercard’s SpendingPulse report. The figure includes sales from Nov. 1 to Dec. 24 and is not adjusted for inflation.
- The last five days of the holiday season accounted for 10% of all holiday spending as consumers latched onto promotions set during the “November and Black Friday shopping period,” per Mastercard data.
- Online retail sales grew 6.7% year over year and in-store sales increased 2.9%. Apparel led e-commerce sales growth by nearly 7% compared to last year.
Dive Insight:
Experts in September predicted record digital sales for the 2024 holiday season, and according to Mastercard’s latest data, retail didn’t disappoint. Though Mastercard’s numbers are preliminary, its consumers embraced digital first shopping during the latest holiday shopping season with e-commerce, curbside pickup and delivery as top options, according to the survey.
“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,” Michelle Meyer, chief economist at the Mastercard Economics Institute, said in a statement. “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."
The season also saw a year-over-year increase in spend on goods. Apparel saw a 3.6% increase, jewelry saw 4% increase and electronics at 3.7 % rise, per the report.
Online purchases ruled across the U.S. as shoppers in cities like Tampa (10.6%) and Phoenix (10%) saw double-digit e-commerce growth. Additionally, Minneapolis (8.9%), Dallas (8.4%), Charlotte (7.9%), Orlando (7.8%), and Houston (7.6%) showed e-commerce growth compared to last year.
