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Holiday Retail Sales Exceed Expectations Amid Shift to Online Shopping

Key Takeaways

Holiday retail sales for the recent season experienced a year-over-year increase of 3.8%, outpacing previous forecasts, thanks largely to the rise in online shopping, as reported by Mastercard. Their SpendingPulse survey indicated that from November 1 to December 24, online sales surged by 6.9% compared to the previous year, while in-store sales recorded a 2.9% increase. The data suggests that consumer demand was fueled by a desire for deals, with retailers responding by ramping up promotions.

This year’s holiday retail performance exceeded earlier predictions, demonstrating a favorable shift towards online shopping, according to findings from Mastercard.

Mastercard’s SpendingPulse survey revealed that retail sales, not accounting for automobile purchases, grew by 3.8% during the holiday season when compared to the same timeframe in 2023. This figure marks an increase from 3.1% a year earlier and surpasses earlier estimates that anticipated only a 3.2% change.

The boost in spending was predominantly driven by online purchases, which saw a notable 6.9% rise. In contrast, physical store sales climbed more modestly by 2.9%. Moreover, Mastercard highlighted that a significant portion of holiday shopping—around 10%—occurred during the last five days leading up to Christmas.

Michelle Meyer, chief economist at the Mastercard Economics Institute, noted, “The holiday shopping season revealed a consumer who is willing and able to spend but driven by a search for value, as can be seen by concentrated e-commerce spending during the biggest promotional periods.”

Breaking down the performance by category, jewelry sales emerged as one of the top performers, increasing by 4% from the previous year. Meanwhile, electronics saw a growth of 3.7%, and apparel sales rose by 3.6%, indicating a robust interest across various consumer sectors during the holiday shopping period.

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