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U.S. Holiday Sales Surpass Expectations Amid Strategic Discounts
Recent data reveals that U.S. holiday sales experienced an encouraging uptick, driven by significant discounts and a surge in last-minute shopping activities. According to a report by Mastercard SpendingPulse, spending from November 1 through December 24 increased by 3.8% compared to the previous year, exceeding earlier projections.
The resilience of consumers has been a notable trend throughout 2024, persistently observed despite ongoing challenges presented by inflation and elevated interest rates. Retailers, however, reported that customer sentiment is characterized by selectivity and caution as the holiday season approached.
In response to this cautious consumer behavior, many retailers intensified their efforts to reduce prices and enhance promotional offerings. For instance, Walmart has committed to maintaining lower prices through temporary reductions, often referred to as rollbacks. Similarly, Target emphasized the necessity for ongoing promotions to keep its customers engaged during this key shopping period.
Dollar General has indicated that it anticipates profit pressures due to heightened promotional activities within the fourth quarter. Other retailers, such as Kroger and Five Below, also acknowledged the need to cut prices to remain competitive in the current retail landscape.
Online shopping has notably outpaced physical store sales, continuing the trend toward digital-first shopping experiences. This evolution in consumer behavior has been highlighted by Steve Sadove, a senior adviser to Mastercard and former CEO of Saks, who noted the significant shift toward online retail.
Furthermore, retailers have begun exploring innovative technologies, like generative AI, to enhance customer service and improve product search functionalities. Efforts have also been made to refine curbside pick-up and delivery options, as stores strive to provide consumers with a more seamless shopping experience during the bustling holiday season.
Source
finance.yahoo.com