US retail sales grow 3.1% during holiday season, says Mastercard

US RETAIL sales rose 3.1 per cent between Nov 1 and Dec 24, rounding up a majority of the holiday sales for retailers, as shoppers looked for last-minute Christmas deals amid big promotions, a Mastercard report showed on Tuesday (Dec 26).

The increase is lower than the 3.7 per cent growth Mastercard forecast in September, and has slumped from last year’s 7.6 per cent as higher interest rates and inflation pressured consumer spending.

In the United States, Amazon.com and Walmart have ramped up promotions through November to entice bargain-hunting shoppers, but analysts have said the discounts were not as deep as the previous year, when retailers were saddled with excess stock.

Some of those discounts were rolled back starting December, when customers had expected to buy last-minute gifts and household goods on the Saturday before Christmas – dubbed “Super Saturday”.

Ecommerce sales grew at a slower pace of 6.3 per cent from last year’s 10.6 per cent as the popularity of online shopping came off pandemic highs, the report showed.

Sales in the apparel and restaurant categories rose 2.4 per cent and 7.8 per cent, respectively, during the holiday shopping period, according to the Mastercard SpendingPulse report, while sales of electronics fell 0.4 per cent.

SEE ALSO

Retailers dangle fewer discounts for inflation-weary shoppers

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

Mastercard SpendingPulse measures in-store and online retail sales across all forms of payment. It excludes automotive sales. REUTERS