Holiday sales during the 2024 season increased by 3.8%, surpassing the 3.1% rise from the previous year, despite higher prices for groceries and other essentials.
The big picture: Data from Mastercard SpendingPulse revealed that the last five days of the holiday season accounted for 10% of the total spending.
- Retailers faced time constraints with five fewer days between Thanksgiving and Christmas, leading them to encourage early and bulk shopping from consumers.
- Online sales saw significant growth with a 6.7% increase compared to the previous year, while in-person spending rose by 2.9%.
- Clothing, restaurant, electronics, and jewelry sales experienced growth, with online shopping driving most of the increase.
- Despite challenges such as the shorter holiday shopping period, retailers managed to attract shoppers with discounts and promotions.
What we’re watching: The National Retail Federation expects a 2.5%-3.5% increase in purchases compared to the previous year, indicating a slower growth rate than the 3.9% increase observed in the holiday season of 2023.
