Holiday shoppers opened their wallets at the last minute Good deals on online platformsMaking significant purchases in apparel, electronics and jewellery, it is a sign that household finances remain healthy.
The Mastercard SpendingPulse report said spending during the holiday shopping period of November 1 to December 24 increased 3.8% over 2023, compared with a previously estimated increase of 3.2% and 3.1% during the same period last year. There was an increase.
“The consumer is healthy. Unemployment is low. Wages are increasing. Their personal finances are reflected by the fact that they are making purchases,” Steve Sadove, a senior adviser at Mastercard and former Sachs CEO and chairman, told Reuters.
During the holiday season, many U.S. retailers described their consumers as being “selective,” “cautious,” and making “conservative” and “necessities-based” purchases. As a result, many cut prices and doubled down on promotion offers, Bernstein analysts said earlier this month.
For example, Walmart said it will continue Lower prices through rollbackwhile the opponent Target said it will increase its promotional intensity Since without promotion buyers were not as attractive.
dollar general She said she expected increased promotions to pressure profits in the fourth quarter, while Kroger and Five Below also said they would have to lower prices to be competitive.
Retailers experimented with generative AI for customer service and product discovery and tried to improve curbside pick-up and delivery services to provide a seamless shopping experience.
Sadove said the level of promotions remained consistent with last year, but the introduction of advanced TVs and laptops, the growing acceptance and low prices of lab-grown diamonds and ongoing demand for athleisure apparel encouraged shoppers to open their wallets.
According to MasterCard, this led to sales in the apparel, jewelery and electronics categories increasing by 3.6%, 4% and 3.7% respectively compared to the previous year.
Notably, online sales of apparel grew a healthy 6.7%, while in stores rose 0.7%, as shoppers searched for deals on multiple websites.
Mastercard SpendingPulse measures in-store and online retail sales across all payment types. The data does not include automotive sales and is not adjusted for inflation.
