US retail sales saw a 3.1 per cent increase between 1 November and 24 December with shoppers seeking last-minute Christmas deals amidst significant promotions, as per a recent Mastercard report.
This uptick fell short of Mastercard’s earlier September forecast of 3.7 per cent growth and last year’s 7.6 per cent rise, attributed to mounting pressure on consumer spending from higher interest rates and inflation.
Amazon.com and Walmart intensified promotions in November to attract bargain hunters, although analysts noted that discounts weren’t as deep as the previous year due to excess stock post-pandemic.
Discounts were scaled back in December, especially on the Saturday before Christmas, known as “Super Saturday,” when consumers were expected to purchase last-minute gifts and household items.
Arun Sundaram from CRFA Research highlighted that many shoppers delayed holiday purchases until Black Friday and Cyber Monday, concluding their shopping spree on Super Saturday. Despite ongoing spending, consumers remained price-conscious, aiming to stretch their budgets.
Sundaram characterized the weeks between Cyber Monday and Super Saturday as a “soft period” for spending, with consumers leveraging the final weekend before Christmas to secure “big deals.”
Ecommerce sales grew at a more moderate pace of 6.3 per cent, compared to the previous year’s 10.6 per cent, reflecting a decline in online shopping popularity from pandemic highs.
According to the Mastercard SpendingPulse report, sales in the apparel and restaurant categories increased by 2.4 per cent and 7.8 per cent, respectively, during the holiday shopping period, while electronics sales experienced a 0.4 per cent decline.
Mastercard SpendingPulse measures both in-store and online retail sales across all payment methods, excluding automotive sales.
