Holiday Retail Sales Rise 3.8% Despite Economic Headwinds
Thursday, Dec 26, 2024 1:53 pm ET
2min read Holiday retail sales in the U.S. rose 3.8% year-over-year during the 2024 holiday season, according to Mastercard SpendingPulse, which tracks all kinds of payments including cash and debit cards. This increase outpaced the 3.1% growth from the previous year, despite economic headwinds such as elevated prices for many groceries and other necessities.
The holiday season, from the beginning of November through Christmas Eve, saw a significant shift in consumer behavior, with online sales jumping 6.7% from a year ago and in-person spending rising 2.9%. This trend was particularly evident during the biggest promotional periods, such as Black Friday and Cyber Monday, when consumers sought value and concentrated their spending online.
Michelle Meyer, chief economist at the Mastercard Economics Institute, noted that the holiday shopping season "revealed a consumer who is willing and able to spend but driven by a search for value," as seen by the concentrated online spending during these promotional periods. This shift in consumer behavior allowed retailers to cater to the demand for deals and promotions, ultimately driving the overall increase in holiday retail sales.
The growth of e-commerce continued to dominate the retail landscape, with certain cities emerging as leaders in online shopping. Tampa, Florida, and Phoenix saw double-digit growth of 10.6% and 10%, respectively, while other metropolitan areas such as Minneapolis (8.9%), Dallas (8.4%), and Charlotte, North Carolina (7.9%), also showcased a strong preference for online shopping.
Despite the shorter holiday shopping period between Thanksgiving and Christmas, with five fewer days, retailers successfully adapted their promotional strategies to encourage shoppers to buy early and in bulk. This was evident in the 3.8% increase in holiday sales, which outpaced the previous year's growth. Retailers offered deals during the biggest promotional periods to meet the demand of value-minded consumers, with the last five days of the season accounting for 10% of total retail spending.
The presidential election in 2024 also captured consumers' attention and influenced their spending decisions. Retailers felt more pressure this year due to the shorter holiday shopping period and the distraction of the election. Sales of general merchandise slid 9% in the two weeks ended Nov. 9, according to Circana, a market research group. However, sales have been rebounding since then, indicating that retailers are working to make up for those losses.
In conclusion, the 3.8% increase in holiday retail sales demonstrates the resilience of the U.S. consumer and the adaptability of retailers in the face of economic headwinds and a compressed holiday shopping season. The shift in consumer behavior towards online shopping, particularly during peak promotional periods, contributed significantly to the overall increase in holiday retail sales. As the retail landscape continues to evolve, investors should keep an eye on the trends shaping consumer spending and the strategies retailers employ to meet their demands.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
Don't invest blindly in stocks or crypto when you do not have a proper guide. I lost 30k trying to trade on my own but ever since Mrs Elizabeth Towles stepped in, I have been making huge profits. I made over 450k since October. She is always available to tell you more about investing and give a guide on how to trade visit her on WhatsApp +1(563)279-8487
Investing in crypto stands to be the best decision I've ever made in my Life. With the help of a trustworthy broker.
I earn huge profits weekly despite the fluctuation of the market..
you can reach out to +.1563.279-8487👍
Weeks ago I started my trading journey with $1000 and didn’t have much experience. After few days of consistent work and following the recommendations of Elizabeth Towles on Whatsapp +1563 279-8487,I managed to grow my account to $8850
I lost over $80k when everything, I started to think. Not because I was in an exchange that went belly up. I was just ignorant to hold, because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two weeks of being in the market, I'm really grateful I found one source to recover my money, at least I'm making $10k profits weekly for three months now. Thanks to Emily E. Henry, I really appreciate her platform on Facebook and her advice and guidance on my investment.