Holiday retail sales saw a strong performance this year, with US retail sales rising 3.8% from the previous year, according to Mastercard SpendingPulse, the Washington Post reports.
This uptick came as consumers chased discounts and deals across a variety of product categories, including apparel, gadgets, and personal-care items, driving a stronger-than-expected holiday shopping season.
Between November 1 and December 24, sales across both online and in-store shopping surpassed expectations, supported by a healthy labor market and household wealth gains, according to Mastercard’s report. While shoppers remained focused on value and bargains, their willingness to spend remained robust.
“The holiday shopping season revealed a consumer who is willing and able to spend but driven by a search for value,” said Michelle Meyer, chief economist at the Mastercard Economics Institute.
Online shopping played a significant role in the overall sales growth, with a 6.7% increase from last year, while in-person shopping rose by 2.9%. Popular items during the season included sweaters, smartwatches, and skin-care sets. Electronics and apparel saw notable growth as well, with electronics sales increasing 3.7% and apparel rising 3.6%.
Retailers, who had been preparing for a price-conscious holiday season, responded with discounts and promotions to meet consumer demand. Steve Sadove, senior adviser for Mastercard, noted that shoppers were motivated by deals, and retailers were quick to adjust their strategies to offer value.
Sales of luxury goods were also noteworthy. Jewelry sales, particularly in the luxury sector, increased 4% overall, with high-end brands like Cartier and Tiffany seeing strong sales. Younger shoppers under the age of 45 drove much of the demand, indicating that efforts by jewelry brands to target younger consumers may be paying off.
While wealthier consumers splurged on durable goods like home appliances, furniture, and electronics, many shoppers still leaned toward discount retailers. Dollar stores saw a 7% increase in spending, while Walmart also projected strong sales, drawing in customers from higher-income households.
However, not all retailers experienced success. Some companies, such as The Container Store and Party City, faced difficulties and filed for bankruptcy, while discount chain Big Lots announced plans to close nearly 900 stores. The ongoing challenges in the retail industry reflect a shift in consumer spending behavior, with online giants like Amazon and Walmart continuing to gain market share due to their extensive logistics and supply-chain capabilities.
