Early retail sales allowed consumers time to find deals, but spending failed to meet expectations from September.
Topline
U.S. retail sales increased 3.1% year-over-year during the holiday season due to retail promotions and an increase in online and restaurant spending, according to a preliminary report from Mastercard—failing to meet expectations of a 3.7% growth this holiday.Key Facts
Online spending increased by 6.3% year-over-year compared to in-store spending at 2.2%, pointing to a faster growth rate for online shopping, though in-store shopping still made up a larger portion of total retail sales, Mastercard said in its SpendingPulse survey, which tracks non-automotive purchases from Nov. 1 to Dec. 24.
U.S. consumers focused their spending on clothing this holiday season, leading to a 2.4% year-over-year increase in this sector, according to Mastercard.
Americans also spent more on food, according to the report, with restaurant spending up 7.8% year-over-year, and grocery spending up 2.1%—even as food inflation eased over the last year following a red-hot 2022.
Sales for electronics and jewelry were down 0.4% and 2%, respectively, this holiday season compared to last year—after Mastercard predicted a 6% year-over-year increase in electronics spending this year.
