U.S. Retail Sales Rise During Holiday Season

U.S. retail sales rose 3.8% during the holiday season, according to Mastercard Inc (NYSE:MA) SpendingPulse report released on Tuesday. This growth was driven by strong consumer demand and a focus on value-seeking behaviors, despite ongoing inflationary pressures.

Key Highlights:

• Online Sales Growth: Online sales increased by 6.7% year-over-year, surpassing the 2.9% growth in in-store purchases.
• Popular Categories: Apparel, jewelry, and electronics experienced notable gains.
• Last-Minute Shopping: The final five days of the season represented 10% of total holiday spending.

Michelle Meyer, chief economist at the Mastercard Economics Institute, noted, "The holiday shopping season revealed a consumer who is willing and able to spend but driven by a search for value, as evidenced by concentrated e-commerce spending during major promotional periods."

Retailers successfully balanced their brick-and-mortar and online strategies to meet consumer demand, according to Steve Sadove, Mastercard senior advisor. He commented, "This holiday season, we saw consumers motivated by deals, and retailers responded with promotions to meet the demand."