According to recent data from Mastercard SpendingPulse, US retail sales during the Christmas season of 2023—from November 1 to December 24—saw a 3.1 percent year-over-year growth, excluding vehicle sales.
Apparel was one of the top categories, growing by 2.4 percent in the previous year as shoppers looked for new clothes for the holidays.
Remarkably, year-over-year growth in online retail sales was 6.3 percent, much higher than the relatively moderate 2.2 percent growth in in-store sales.
According to the survey, in-store shopping still accounts for a substantially bigger portion of total retail spending, even though online spending is expanding more quickly.
“The consumer demonstrated their presence this holiday season by engaging in deliberate spending,” stated Michelle Meyer, Chief Economist at the Mastercard Economics Institute.
This holiday season, the following were the main retail trends:
Shopping Extravaganzas, both in-store and online: Online retail sales climbed by 6.3% YoY, while in-store sales surged by a more moderate 2.2% YoY. Online spending is expanding more quickly than in-store spending, which means it is capturing a larger share of the retail market. However, in-store purchasing still accounts for a much higher fraction of total retail spending.
Winter Wardrobe Wonderland: This season, as people shopped for new clothes and the approaching holidays, apparel was one of the most popular categories. YOY, the sector increased by +2.4%.
Season’s Eatings: To celebrate the holidays, family and friends got together in restaurants where the culinary festivities continued. Grocery was up +2.1% for the season, while the restaurant sector was up +7.8% year over year.
Steve Sadove, senior advisor for Mastercard and former CEO and chairman of Saks Incorporated said, “Retailers started promotions early this season, giving consumers time to hunt for the best deals and promotions.”
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, he added.
