Mastercard: 2024 holiday retail sales rise nearly 4%
U.S. holiday retail sales increased from last year, with online shopping leading the way.
That’s according to preliminary insights from Mastercard SpendingPulse, which found that retail sales excluding automotive increased 3.8% year-over-year from Nov. 1 through Dec. 24. The last five days of the holiday season accounted for 10% of all holiday spending, meaning Super Saturday (Dec. 21) helped play a key role for retailers.
Online retail sales grew 6.7% year-over-year, whereas in-store sales increased 2.9% compared to the 2023 holiday season. Notably, the apparel sector showed a strong lead in e-commerce sales, with 6.7% growth for online purchases compared to last year. Tampa (10.6%) and Phoenix (10.0%) lead all cities with double digital growth followed by Minneapolis (8.9%), Dallas (8.4%), Charlotte (7.9%), Orlando (7.8%) and Houston (7.6%) coming in well above the national total for e-commerce sales compared to 2023.
Mastercard says that consumer demand for experiences like dining out strengthened in the holiday season, with restaurant spending growth up 6.3% during the period compared to last year. Additionally, this season saw an increase in spending growth on goods compared to last year, with apparel (3.6%), jewelry (4.0%) and electronics (3.7%) as notable sectors for gift-giving.
[READ MORE: Retail sales rose more than expected in November, fueled by auto, online]
“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 at 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.”
Earlier in December, Mastercard SpendingPulse revealed that U.S. retail sales (excluding automotive but including restaurants) on Black Friday rose 3.4% over last year. Online retail sales increased 14.6%, while in-store sales inched up 0.7% compared to Black Friday last year.
Mastercard SpendingPulse measures in-store and online retail sales, representing all payment types and is not adjusted for inflation.
