Fueled by the convenience of shopping online, consumers spent 3.9% more (ex-auto) this holiday season according to preliminary results from Mastercard’s (MA) SpendingPulse retail sales study.
The results compile transactions from all payment types for the period between November 1 through December 21 and are not adjusted for inflation.
Online sales were up 7.4% with shoppers browsing online marketplaces to find the best deals, best shipping options, and fastest delivery. This compares to a more modest increase of 2.9% for in-store shopping.
The gap between in-store and online shopping was narrower for clothing sales with online apparel sales up 8.5% and in-store climbing 7.0% from last year, aided by colder weather and seasonal promotions.
Finally, spending on dining out increased as well, up 5.2% during the seven-week period.
“Consumers demonstrated flexibility and confidence this season, shopping early, leveraging promotions, and investing in meaningful experiences and wish-list items. They also blended online and in-store shopping to find the best deals and maximize convenience,” said Michelle Meyer, chief economist, Mastercard Economics Institute.
According to preliminary forecasts by the National Retail Federation, U.S. consumers are expected to spend a record $1 trillion during the holidays, representing growth of 3.7% to 4.2% from the 2024 holiday season. This translates to ~$890 per person spent on gifts, food, decorations, and other holiday items.