Holiday shoppers turned to online deals as they rushed to complete their shopping before Christmas. Retailers capitalized on the trend by offering discounts, free delivery, and curbside pickup.
According to a Mastercard report, online spending during the holiday season grew 6.7% compared to last year, while in-store sales rose only 2.9%. This led to a total increase of 3.8%, surpassing forecasts.
Retailers, aware of their consumers’ cautious nature, doubled down on promotions and price cuts. Walmart vowed to continue lowering prices through rollbacks, while Target increased its promotional intensity. Other retailers, like Dollar General, Kroger, and Five Below, had to reduce prices to stay competitive.
As the holiday season was shorter than usual, with only 27 days between Thanksgiving and Christmas, many retailers focused on reaching shoppers through social media platforms like TikTok, Peacock, and Hulu. Their membership programs offered quick delivery and buy-online-pickup-in-store services, enticing customers to shop online.
Key highlights include:
* Online spending increased by 6.7% compared to last year
* In-store sales rose only 2.9%
* Total spending increased by 3.8%, surpassing forecasts
* Retailers focused on promotions and price cuts to reach cautious consumers
Source: https://finance.yahoo.com/news/us-holiday-retail-sales-come-123713190.html