In its preliminary holiday season report, Mastercard SpendingPulse singled out “jewelry” as the top-performing gift-giving category.
Overall retail sales during the period from November 1 through December 24 saw a 3.8% increase compared to 2023, with the last five days of the holiday season accounting for 10% of all holiday spending. The actual 3.8% growth blew by Mastercard's early-season forecast of 3.2%, as well as last year's growth rate of 3.1%.
Jewelry sales during the holiday season surged 4.0% compared to 2023, while electronics saw an increase of 3.7% and apparel grew 3.6%.
According to the credit card company, empowered consumers sought value at every turn this year, responding to promotions during the November and Black Friday shopping period, and filling their baskets in the run-up to December 24.
"This holiday season, we saw consumers motivated by deals, and retailers responded with promotions to meet the demand,” said Steve Sadove, senior advisor for Mastercard and former CEO and chairman of Saks Incorporated. “The value-minded consumer showed up to shop at brick-and-mortar stores and e-commerce platforms, with retailers managing across both to capture attention throughout the season."
Mastercard also reported that consumer demand for experiences, such as dining out, strengthened during the holiday season, with restaurant spending up 6.3% compared to last year.
“Solid spending during this holiday season underscores the strength we observed from the consumer all year, supported by the healthy labor market and household wealth gains," noted Michelle Meyer, chief economist, Mastercard Economics Institute.
Another key takeaway from the Mastercard report is that consumers are increasingly embracing digital-first shopping, with e-commerce, curbside pick-up and delivery being top-of-mind during this year's festive season. Online retail sales grew 6.7% year-over-year, whereas in-store sales increased 2.9%.
Mastercard SpendingPulse™ reports on US retail sales across all payment types. It measures both in-store and online retail sales and is not adjusted for inflation. The findings are based on aggregate sales activity in the Mastercard payments network.
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