US holiday retail sales outperformed expectations, growing 3.8% over last year, according to a Mastercard SpendingPulse report. This surge was driven by strong online spending, which increased by 6.7%, largely due to the convenience and competitive pricing offered by retailers.
Key findings include:
* Online shopping accounted for more than half of holiday sales, with consumers opting for clothing, jewelry, and electronics as top categories.
* The last five days of the holiday season accounted for 10% of all spending, demonstrating strong consumer demand in the end.
* Retailers responded to cautious consumer behavior by cutting prices and offering promotions, which appeared to work effectively.
Mastercard experts attribute the success to factors such as:
* Convenience: Online shopping offered quick delivery, buy-online-pickup-in-store options, and fast free deliveries.
* Competitive pricing: Retailers kept prices in check despite inflation, with some even lowering them to stay competitive.
* Technology acceptance: Lab-grown diamonds, new technology, and athleisure apparel drove sales growth in these categories.
Overall, the results suggest that US consumers demonstrated “real consumer strength” during the holiday season, driven by low unemployment and higher wages.
Source: https://www.reuters.com/markets/us/us-holiday-retail-sales-come-above-forecast-mastercard-says-2024-12-26