According to early data from Mastercard SpendingPulse, holiday retail sales in the US grew at a slower pace in 2023 compared to the previous year. The study revealed that retail sales, excluding autos, increased by 3.1% from November 1 to December 24, a drop from the 7.6% growth seen in 2022. This slower growth can be attributed to consumers who were more selective in their shopping, seeking value and promotions throughout the holiday season.
Michelle Meyer, the chief economist of Mastercard Economics Institute, noted that consumers were being cautious in their spending. This cautious approach reflects the uncertain economic climate and the desire to make informed purchasing decisions. The holiday retail sales serve as an important indicator of the overall health of the US economy, and the recent numbers have shown its resilience. While retail sales unexpectedly improved in November, with lower gasoline prices providing some relief for shoppers, companies have reported mixed results, indicating that consumers are increasingly spending with caution.
The data from Mastercard SpendingPulse also indicated a difference in sales performance between online and in-store channels. Online sales experienced a growth of 6.3%, while in-store sales saw a more modest growth of 2.2%. Among various sectors, restaurants and apparel saw the highest increase in sales compared to the previous year. However, spending on jewelry and electronics declined.
These trends in holiday sales provide valuable insights into consumer behavior and preferences. By understanding where consumers are allocating their budgets and which products are driving sales growth, retailers can better tailor their strategies and offerings to meet customer demands.
As the holiday shopping season continues, it will be interesting to see how retail sales evolve and whether consumers’ cautious spending patterns will continue into the new year. Retailers will need to remain adaptable and adjust their strategies to effectively navigate the changing consumer landscape.
Useful link:
1. Reuters – US weekly store sales jump 4.8% ahead of key holiday shopping week
2. CNBC – Online sales hit record $10.7 billion on Black Friday, Adobe Analytics says
