U.S. retail sales increased 3.1% year-over-year during the holiday season due to retail promotions and an increase in online and restaurant spending, according to a preliminary report from Mastercard—failing to meet expectations of a 3.7% growth this holiday. Online spending increased by 6.3% year-over-year compared to in-store spending at 2.2%, pointing to a faster growth rate for online shopping, though in-store shopping still made up a larger portion of total retail sales, Mastercard said in its SpendingPulse survey, which tracks non-automotive purchases from Nov. 1 to Dec. 24.
U.S. consumers focused their spending on clothing this holiday season, leading to a 2.4% year-over-year increase in this sector, according to Mastercard. Americans also spent more on food, according to the report, with restaurant spending up 7.8% year-over-year, and grocery spending up 2.1%—even as food inflation eased over the last year following a red-hot 2022. Due to early-season promotions from retailers this year, consumers had “time to hunt for the best deals and promotions,” Steve Sadove, senior advisor for Mastercard, said, adding retail sales were “about getting the most bang for your buck as consumers spent on a variety of goods and services, resurfacing spending trends from before the pandemic.”
Source: Forbes