U.S. consumers defied economic concerns this holiday season, pushing retail sales excluding automotive up 3.1% year-over-year from November 1st to December 24th, according to MasterCard (MA) SpendingPulse.
Mastercard (NYSE:MA) SpendingPulse, which tracks in-store and online retail sales across all forms of payment, reveals online retail sales increased by 6.3% year-over-year, outpacing the 2.2% growth seen in brick-and-mortar stores. While online continues to gain traction, physical stores still hold a sizable majority of total retail spending.
"This holiday season, the consumer showed up, spending in a deliberate manner," said analysts at the Mastercard Economics Institute. "The economic backdrop remains favorable with healthy job creation and easing inflation pressures, empowering consumers to seek the goods and experiences they value most."
Apparel emerged as a key player, rising 2.4% year-over-year as shoppers refreshed their winter wardrobes and prepared for festive occasions. Restaurants also saw a rise, posting a 7.8% year-over-year gain, while grocery spending ticked up 2.1%.
"Retailers started promotions early this season, giving consumers time to hunt for the best deals and promotions," said Steve Sadove, senior advisor for Mastercard and former CEO and Chairman of Saks Incorporated. "Ultimately, it was about getting the most bang for your buck as consumers spent on a variety of goods and services, resurfacing spending trends from before the pandemic."