
Mastercard SpendingPulse reports that U.S. retail sales rose 3.8%, with online shopping leading the way, growing 6.7% year-over-year.
Preliminary insights from Mastercard SpendingPulse™ reveal that U.S. retail sales, excluding automotive, rose by 3.8% year-over-year from November through December . Mastercard SpendingPulse tracks both in-store and online retail sales, encompassing all payment types, without adjusting for inflation.
Michelle Meyer, chief economist at the Mastercard Economics Institute, commented, “The holiday shopping season revealed a consumer who is willing and able to spend but driven by a search for value, as seen in the surge of e-commerce spending during major promotional periods.” She continued, “Strong spending during this holiday season highlights the ongoing resilience of consumers, supported by a healthy labor market and growing household wealth.”

Key trends that shaped the retail landscape this holiday season include:
1. The Most Valuable Time of the Year: Consumers were focused on value during this holiday season, especially during peak promotional periods like Black Friday. This strategy led to an overall 3.8% increase in retail sales compared to 2023. Notably, the final five days of the holiday season accounted for 10% of total holiday spending, underscoring the importance of the post-Christmas shopping period.
2. A Balanced Basket: Along with traditional gift-giving items, consumers also showed strong demand for experiences. Restaurant spending rose by 6.3% compared to last year, reflecting the growing trend of consumers spending on leisure and dining out during the holiday season. In addition, spending on goods such as Apparel (up 3.6%), Jewelry (up 4.0%), and Electronics (up 3.7%) demonstrated a healthy appetite for holiday gifts.
3. A Shift Toward Digital Shopping: This holiday season saw a clear preference for online shopping, with e-commerce sales growing by 6.7% year-over-year. In-store sales also saw an increase, up 2.9%, but online shopping was clearly the dominant trend. The Apparel sector particularly saw a strong push in online sales, with a notable 6.7% growth compared to last year, highlighting how consumers are increasingly turning to digital channels for fashion purchases.
4. Digital-Savvy Shopping Cities: While online shopping is widespread, certain cities demonstrated particularly high e-commerce growth. Cities like Tampa (10.6%) and Phoenix (10.0%) saw double-digit growth in online sales, with Minneapolis (8.9%), Dallas (8.4%), Charlotte (7.9%), Orlando (7.8%), and Houston (7.6%) also showing significant increases in e-commerce activity compared to 2023. These cities are embracing the shift toward digital shopping, with many consumers opting for the convenience of online and curbside pick-up options.
Steve Sadove, senior advisor for Mastercard and former CEO of Saks Incorporated, noted, “This holiday season, we saw consumers motivated by deals, and retailers responded with promotions to meet the demand. The value-minded consumer showed up to shop at both brick-and-mortar stores and e-commerce platforms, with retailers managing across both channels to capture attention throughout the season.”
Mastercard SpendingPulse data reveals U.S. retail sales, excluding automotive, grew 3.8% year-over-year from November 1 to December 24. E-commerce saw a 6.7% increase, while in-store sales rose 2.9%. The last five days of the season accounted for 10% of total holiday spending. Consumers focused on value, responding to promotions, particularly during November and Black Friday. Dining out saw a 6.3% increase, while apparel, jewelry, and electronics experienced solid growth. Cities like Tampa and Phoenix led in e-commerce growth. Retailers adapted to demand, offering deals across both online and in-store platforms, according to Mastercard experts.
Overall, the holiday retail season revealed a strong consumer demand for value, convenience, and variety. Retailers responded with targeted promotions and strategies to ensure they captured consumer attention both in-store and online.
About Mastercard SpendingPulse:
Mastercard SpendingPulse provides insights into national retail sales based on aggregated, anonymized data from Mastercard, covering all payment types. It tracks sales across various sectors, including retailers and food services, but excludes travel services like airlines and lodging. These insights reflect consumer spending patterns across select markets and are not indicative of Mastercard’s financial performance. It’s important to note that forecasts and insights are subject to change.