Mastercard SpendingPulse
reports a 3.8% year-over-year increase in U.S. retail sales, excluding automotive, for the holiday season spanning November 1 to December 24. This comprehensive analysis tracks both in-store and online retail sales across all payment methods, offering a clear snapshot of consumer spending trends.
Unaffected by inflation adjustments, the data highlights steady growth in the retail sector during one of the most critical shopping periods of the year. With both digital and brick-and-mortar channels contributing to the rise, the results underscore consumers’ continued enthusiasm for holiday purchases despite broader economic challenges.
Detailed category and regional insights are anticipated to further illuminate trends, providing valuable perspectives on the performance of the U.S. retail market during the festive season.
“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,” said Michelle Meyer, chief economist, Mastercard Economics Institute. “Solid spending during this holiday season underscores the strength we observed from the consumer all year, supported by the healthy labor market and household wealth gains.”
Key Retail Trends Shaped the 2024 Holiday Season
The 2024 holiday season revealed fascinating consumer behaviors and spending patterns. Here’s a breakdown of the standout trends:
The Most Valuable Time of the Year
Consumers embraced value-driven shopping, responding enthusiastically to promotions during November and the Black Friday shopping period. The momentum carried through to December 24, with the last five days alone contributing 10% of total holiday spending. Overall, retail sales saw a 3.8% growth compared to 2023, highlighting the strength of seasonal purchasing.
A Balanced Basket
Holiday spending wasn’t limited to goods this year, as demand for experiences surged. Restaurant spending increased by 6.3% year-over-year, reflecting a strong appetite for dining out. Gift-giving also saw growth in key sectors, with Apparel up 3.6%, Jewelry rising 4.0%, and Electronics seeing a 3.7% boost compared to last year.
Clicking All the Way
Digital-first shopping remained a dominant trend, with consumers favoring e-commerce, curbside pickup, and delivery. Online retail sales soared by 6.7% year-over-year, outpacing the 2.9% growth in in-store purchases. The Apparel sector particularly excelled online, achieving a 6.7% increase in e-commerce sales.
Digital-Savvy Shopping Cities
Certain U.S. cities demonstrated exceptional adoption of e-commerce during the holidays. Tampa (10.6%) and Phoenix (10.0%) led the way with double-digit growth, followed by Minneapolis (8.9%), Dallas (8.4%), Charlotte (7.9%), Orlando (7.8%), and Houston (7.6%), all significantly surpassing the national average.
These trends underline a dynamic holiday season driven by empowered consumers, a strong preference for experiences, and a growing reliance on digital shopping channels.
“This holiday season, we saw consumers motivated by deals and retailers respond with promotions to meet the demand,” said Steve Sadove, senior advisor for Mastercard and former CEO and chairman of Saks Incorporated. “The value-minded consumer showed up to shop at brick-and-mortar stores and e-commerce platforms, with retailers managing across both to capture attention throughout the season.”
Mastercard SpendingPulse Highlights U.S. Holiday Retail Sales Growth
For the 2024 holiday shopping period (November 1 to December 24), U.S. retail sales, excluding automotive, grew by 3.8% compared to 2023. The report highlights key trends in consumer behavior:
- Total Retail Growth:
- Online Sales surged by 6.7%.
- In-store Sales increased by 2.9%.
- Sector Performance:
- Apparel saw a 3.6% growth overall, with a remarkable 6.7% rise in online sales, while in-store apparel sales grew modestly by 0.2%.
- Electronics recorded a 3.7% increase.
- Jewelry spending rose by 4.0%.
- Department Stores experienced slower growth at 1.6%.
- Restaurant Spending led the way with a robust 6.3% growth.
These figures underscore the continued momentum of e-commerce and the importance of diverse spending categories during the holiday season.
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