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In-Person Shopping Sees Revival Over the Holiday Season
Recent statistics indicate a notable resurgence in physical retail sales during this holiday season. According to new data from Mastercard SpendingPulse, in-store sales experienced a 2.9% increase from November 1 to December 24 this year, reflecting a shift in consumer behavior back to brick-and-mortar shopping.
A long-time employee at Macy’s noted that in-person shopping remains resilient. “We’re still holding on, and we’re still making our numbers because people are shopping,” she remarked, emphasizing the sustained demand for retail experiences.
Similarly, shop owners in a Henderson, Nevada, mall reported that they either met or exceeded their sales targets for the holiday period. “We actually passed our goal, so that was good,” stated Brandon Nova, owner of Bring It Back, highlighting the ongoing growth in foot traffic and sales.
Overall, Americans are projected to spend a staggering $989 billion on holiday shopping this year, according to estimates from the National Retail Federation (NRF). This figure marks an increase of up to $33.4 billion compared to the previous holiday season. NRF data suggests that shoppers allocated an average of $902 each for holiday expenditures, with popular gift categories including clothing, toys, gift cards, and books.
While in-store transactions have seen a boost, online shopping continues to thrive. The NRF projects that online sales will grow between 8% and 9% in 2024, rising from $295.1 billion to approximately $297.9 billion, illustrating the diverse ways consumers engage in holiday shopping.
Despite the positive trend in retail sales, the landscape of physical stores remains complex. There were approximately 7,300 retail store closures reported this year, a sharp increase from 4,627 closures in the previous year. Family Dollar led the pack with 718 closings, closely followed by CVS and Big Lots, each shuttering over 500 locations.
This dual narrative of thriving holiday spending alongside significant retail closings paints a multifaceted picture of the current retail environment, highlighting both the challenges and opportunities faced by physical stores in an evolving marketplace.
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