US retail sales up 3.1% this holiday season

This year's holiday season appears to have been a hit so far for US retailers, with retail sales increasing 3.1 percent year-over-year, according to preliminary insights from Mastercard SpendingPulse ™*.

“This holiday season, the consumer showed up, spending in a deliberate manner,” said Michelle Meyer, chief economist at the Mastercard Economics Institute, in a statement. “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, in particular, was one of the top categories consumers spent on, as the category was up 2.4 percent year-over-year. Shoppers were keen to shop for new winter outfits as well as looks for the holiday festivities, according to the annual report.

Other key retail trends witnessed this holiday season included a boost in online retail sales, which grew 6.3 percent year-over-year in comparison to a more modest 2.2 percent year-over-year increase for in-store sales.

Overall, online retail sales continue to grow at a faster pace than in-store sales, claiming an increasing share of the overall retail market. However, in-store shopping continues to account for a significantly larger fraction of total retail expenditures.

“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, in a statement. “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.”

*The annual Mastercard SpendingPulse™ report, tracking retail sales both in-store and online across various payment methods from November 1 to December 24, reflects aggregate sales within the Mastercard network, excluding the automotive sector. It does not adjust for inflation.