U.S. retail sales surged 3.8% between November 1 and December 24, driven by intense competition among retailers and aggressive promotions that spurred a wave of last-minute holiday shopping.
Mastercard reported on Thursday that year-end sales growth exceeded September forecasts, recording a 3.1% year-over-year increase during the same period. The final five days of the season contributed to a substantial 10% of total holiday spending.
Major retailers, such as Walmart, Target, and Amazon, intensified their promotional campaigns and emphasized value messaging to capture consumer attention in this highly competitive market.
Michelle Meyer, chief economist at the Mastercard Economics Institute, remarked, “The holiday shopping season revealed a consumer who is willing and able to spend but driven by a search for value as can be seen by concentrated e-commerce spending during the biggest promotional periods.”
Online sales increased 6.7% compared to last year’s 6.3% increase. The apparel category showed particularly strong consumer demand.
Budget-friendly e-commerce platforms like Shein and Temu, owned by PDD Holdings, joined the competitive landscape by offering attractive Black Friday and Cyber Monday discounts, appealing to a broad spectrum of shoppers.
The Mastercard SpendingPulse report, which tracks in-store and online retail sales across all payment types except automotive, highlighted these trends in consumer spending patterns during the holiday season.
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