US holiday retail sales rise 3.8% as final days drive 10% spending

Additionally, this season saw an increase in spending growth on goods compared to last year, with apparel (3.6 per cent), jewellery (4.0 per cent) and electronics (3.7 per cent) as notable sectors for gift-giving. Online retail sales grew 6.7 per cent year-over-year, whereas in-store sales increased 2.9 per cent, Mastercard said in a press release.

Notably, the apparel sector showed a strong lead in e-commerce sales, with 6.7 per cent growth for online purchases compared to last year. There was a slight increase in-store apparel sales of 0.2 per cent year-over-year.

Cities like Tampa (10.6 per cent) and Phoenix (10.0 per cent) lead with double digital growth followed by Minneapolis (8.9 per cent), Dallas (8.4 per cent), Charlotte (7.9 per cent), Orlando (7.8 per cent), and Houston (7.6 per cent) coming in well above the national total for e-commerce sales compared to 2023.

“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,” said Michelle Meyer, chief economist, Mastercard Economics Institute. “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.”

“This holiday season, we saw consumers motivated by deals and retailers respond with promotions to meet the demand,” said Steve Sadove, senior advisor for Mastercard and former chief executive officer (CEO) and chairman of Saks Incorporated. “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.”

ALCHEMPro News Desk (SG)