Mastercard’s recent report indicates that retail sales during the holiday season showed a notable increase of 3.8% compared to the previous year, surpassing initial projections. This growth is largely attributed to a boost in online shopping, as reflected in funds spent from November 1 to December 24. According to Mastercard’s Spending Pulse survey, online sales rose by 6.9%, while in-store sales saw a more modest increase of 2.9%.
The overall sales outcome was an improvement from last year’s holiday season, which recorded a growth of 3.1%. The expectations for this year were initially set at 3.2%, making the actual increase notable. Additionally, a significant portion of the purchasing activity took place in the five days leading up to Christmas, accounting for 10% of total transactions, indicating a peak in consumer spending during this time frame.
Michelle Meyer, the chief economist at the Mastercard Economic Institute, highlighted the willingness of consumers to spend during this festive period, though she noted that it appears driven by a search for value and deals. Among various categories, jewelry sales were the fastest-growing, with a year-on-year increase of 4%, followed closely by electronics and apparel, which rose by 3.7% and 3.6% respectively. This data reflects a resilient consumer appetite for shopping, particularly in online spaces, during this key period.