US retail sales grew 3.1% year-over-year this holiday season, running from November 1 through December 24, according to Mastercard SpendingPulse. That excludes automotive and is not adjusted for inflation (it measures in-store and online retail sales across all forms of payment).
So how did the growth break down by channel?
Online retail sales increased 6.3% year-over-year, while in-store sales were up a more modest 2.2% year-over-year.
“Spending online is increasing at a faster pace than in-store, therefore taking a growing slice of the retail pie, but shopping in-store still makes up a considerably larger portion of total retail spending,” according to Mastercard SpendingPulse.
Apparel was one of the top categories, and retailers started promotions early this season. That gave consumers time to hunt for the best deals and promotions, according to Steve Sadove, senior advisor for Mastercard and former CEO and Chairman of Saks Incorporated. “Ultimately it was 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.”
