Grocery, Overall Retail Spending Increased This Holiday Season
The leftovers may still be in the fridge and the wrapping paper on the floor, but some data is already released showing what and how consumers were spending this holiday season.
Mastercard shared findings from its latest Mastercard SpendingPulse research showing that U.S. retail sales rose 3.1% this holiday season on a year-over-year (YoY) basis.
The Purchase, N.Y.- based global payments company measured retail sales in-store and online across all forms of payment, covering several retail sectors. According to Mastercard’s insights, grocery was up 2.4% compared to the 2022 holiday season.
[Read more: “What Were the Biggest Food Retail Stories of 2023?”]
Likely reflecting the fading of the COVID era, restaurant sales climbed 7.8% YoY and consumers also shelled out more for apparel. Also reflecting new ways of shopping in the 2020s, online retail sales edged up 6.3%, compared to a 2.2% lift for in-store sales. That said, Mastercard’s data affirms that shopping at brick-and-mortar stores remains a considerably larger part of total retail spending.
The fresh spending figures support a less-wobbly climate heading into 2024, a Mastercard exec pointed out. “This holiday season, the consumer showed up, spending in a deliberate manner,” declared Michelle Meyer, chief economist at the Mastercard Economics Institute. “The economic backdrop remains favorable with healthy job creation and easing inflation pressures, empowering consumers to seek the goods and experiences they value most.”
To Meyer’s point, Mastercard’s report also noted that as inflation has continued to drop, that trend has set an expectation for shoppers that the highest prices are in the rearview mirror. Still, value is on consumers’ minds, as they have embraced promotions like Amazon Prime Days and are seeking out options across the omnichannel to get more bang for their proverbial buck.
