Did Your Holiday Shopping Follow National Trend? Mastercard's Data Shows Online Sales Surge And In-Store Rise

Zinger Key Points
  • Mastercard reports +6.3% surge in online sales, indicating a significant shift in holiday shopping trends.
  • Apparel, up +2.4% year over year, was one of the top categories for shoppers.

Mastercard Incorporated MA on Tuesday said that U.S. retail sales excluding automotive increased +3.1% year-over-year this holiday season.

According to preliminary insights from Mastercard SpendingPulse, online retail sales increased 6.3% year-over-year, while in-store sales were up a more modest 2.2%.

"This holiday season, the consumer showed up, spending in a deliberate manner," said Michelle Meyer, Chief Economist, Mastercard Economics Institute. 

Also Read: Retailers Naughty Or Nice This Year? App Store Data Shows Early Holiday Shopping Trends

Online spending is outpacing in-store expenditures, capturing a growing share of the retail market, the banking behemoth said in a press release. 

However, in-store shopping still accounts for a significantly larger portion of total retail spending.

"The economic backdrop remains favorable with healthy job creation and easing inflation pressures, empowering consumers to seek the goods and experiences they value most," Meyer added.

Apparel, up +2.4% year over year, was one of the top categories for shoppers this season as consumers shopped for new outfits and upcoming holiday festivities. 

The restaurant sector was up +7.8%, while the grocery sector was up +2.1% for the season.

Also See: Retailers Brace Themselves For Post-Holiday Returns Surge: 'We're Heading For A Trillion-Dollar Problem Here'

Major sectors that witnessed year-over-year declines this holiday season included Jewelry (down 2%) and Electronics (down 0.4%).

The holiday season lasts from November 1 through December 24, Mastercard said. 

Holiday sales figures, propelled by a robust labor market and wage increases, indicate the enduring strength of the economy, The New York Times said in a report. 

The Federal Reserve's efforts to curb high inflation through interest rate hikes have tempered economic growth in recent years, yet many economists anticipate achieving a "soft landing," the report added.

Read Next: "Keep More Of Canada's Financial Sector Under Canadian Ownership" - Royal Bank Of Canada Cleared To Acquire HSBC's Domestic Arm

Photo via Wikimedia Commons

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