According to a report by Mastercard, retail sales in the US experienced a growth of 7.6% during the holiday season, surpassing the initial 7.1% prediction made by Mastercard in September. This increase in sales was initially expected to be driven by consumers advancing their purchases to October, in order to take advantage of early deals. However, this growth fell short compared to last year’s 8.5% increase in holiday retail sales.
Several factors contributed to the lower growth this year, including high inflation, rising interest rates, and the fear of a potential recession, which led consumers to be more cautious with their spending. Despite these concerns, retailers like Amazon.com and Walmart offered significant discounts during the holiday season to clear out excess inventory and balance their stock levels. This tactic resulted in strong demand for various products, particularly during the five-day period from Thanksgiving to Cyber Monday, encompassing both in-store and online sales.
Notably, electronics sales witnessed a decline of 5.3% over the two-month period covered by the report. Conversely, sales in the apparel and restaurants categories saw increases of 4.4% and 15.1% respectively, contributing to the overall growth in retail sales.
Online sales also experienced a rise of 10.6% during the holiday season, although this was slightly lower than the 11% increase observed the previous year. This indicates that online shopping remains popular, but may have reached a saturation point to some extent.
In a separate report by Mastercard in late November, it was revealed that retail sales during the cyber week had surged by approximately 11%. The Mastercard SpendingPulse report takes into account both in-store and online retail sales across all payment methods, except for automotive sales.
Useful links:
– For more information on the current retail trends in the US, visit this US News article.
– To discover tips for retailers to optimize holiday sales strategies, refer to this NRF resource.
