U.S. holiday retail sales rose 3.8% year over year between November 1 and December 24, according to Mastercard SpendingPulse. Shoppers showed a readiness to spend while hunting for value: online sales grew 6.7% and brick-and-mortar sales climbed 2.9%. Strong gains in apparel, restaurants, and electronics signaled healthy consumer demand, supported by a resilient labor market and increases in household wealth.
Apparel purchases posted notable gains as consumers refreshed wardrobes for the season, favoring both value-oriented and premium items. Restaurants also experienced meaningful growth, reflecting continued spending on dining out and social activities. Electronics remained a standout category, driven by gifts and upgrades to home and personal devices.
The broader consumer backdrop helped sustain retail activity. A strong labor market, with steady employment and wage gains for many households, underpinned confidence. At the same time, rising household net worth contributed to spending power, allowing shoppers to balance selective splurges with deals and promotions.
Retailers leaned into omnichannel strategies to capture holiday demand. The faster growth in online sales highlights the continued importance of e-commerce, while in-store performance showed that physical locations remain central for immediate purchases and experiential shopping. Promotions, targeted marketing, and inventory alignment with consumer preferences helped many merchants convert demand into sales.
Despite macroeconomic uncertainties, the holiday period showed that consumers are pragmatic: they seek value but are willing to spend when they feel financially secure. Categories tied to everyday life and gifting—apparel, dining, and electronics—benefited from that mix of caution and willingness to purchase, supporting the overall 3.8% increase in holiday retail sales reported by Mastercard SpendingPulse.