US holiday sales growth trails 2022 with shoppers seeking value

Early data from Mastercard SpendingPulse shows that US holiday retail sales rose at a much slower pace than in 2022, as selective shoppers sought value and promotions throughout the season. 

Retail sales, excluding autos, increased 3.1% from Nov. 1 through Dec. 24 versus a year earlier, according to the study, which uses transactions from Mastercard’s payment networks and survey-based estimates for other forms of payments. In 2022, a similar study from Mastercard SpendingPulse showed holiday sales growth of 7.6%.

Consumers were “spending in a deliberate manner,” said Michelle Meyer, chief economist of Mastercard Economics Institute, in a statement.

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Holiday retail sales are a key barometer for the US economy, which has shown resilience in recent months. Retail sales unexpectedly picked up in November as lower gasoline prices gave shoppers some relief. Even so, companies have reported uneven results and many have said that consumers are spending more cautiously. 

In the most recent data, online sales rose 6.3%, while in-store sales growth was 2.2%. Restaurants and apparel posted the biggest gains from a year earlier, while spending on jewelry and electronics declined.