U.S. holiday season retail data released, online shopping growth exceeds offline physical

It is learned that according to a report released by Mastercard, US retail sales in the 2023 holiday season (November 1 to December 24) increased by 3.1% year-on-year, failing to meet the 3.7% growth forecast earlier this year and lower than the 7.6% increase in the same period last year, as higher interest rates and inflation dragged down consumer spending.

The report pointed out that online spending in the United States increased by 6.3% year-on-year, while in-store spending only increased by 2.2% year-on-year. In recent years, the share of online shopping in the retail industry has continued to increase. However, in-store shopping still accounts for a large proportion of total retail sales.

Mastercard data shows that U.S. consumers' spending this holiday season is mainly concentrated on clothing, with online spending in this category increasing by 2.4% year-on-year. In addition, due to the increase in festivals and gatherings, consumers' spending on food has also increased. Compared with the same period last year, grocery spending increased by 2.1% and restaurant spending increased by 7.8%.

In contrast, U.S. consumer demand for electronics fell 0.4% during the holiday season this year. Another category with a large decline was jewelry, which fell 2% year-on-year.

Michelle Meyer, chief economist at Mastercard Economics Institute, commented that U.S. consumers were more cautious in their spending during this year's holiday season, even in a favorable economic environment of job creation and easing inflation.

Industry analysts noted that while retailers including Amazon and Walmart launched heavy promotions in November to lure bargain-hunting shoppers, discounts were smaller this year compared with the previous year. Some of those discounts ended in December, when consumers were looking for Christmas gifts and home furnishings.

"Consumers are still spending, but they are still price-conscious and looking to stretch their budgets," the analyst added. He said the weeks from Cyber ​​Monday to Super Saturday were "slow sales season" but spending would gradually pick up after that, with shoppers looking for deals in the last weekend before Christmas.

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