US retail sales in December increased by 7.4% year-on-year! Christmas shopping season stimulates consumer demand

According to the latest report from Mastercard Spending Pulse, total U.S. retail sales (excluding car dealers, gas stations and restaurants) increased 7.4% year-on-year in December due to high demand for holiday gifts, travel vacations and parties.

Data showed that in December 2022, U.S. consumers' spending on restaurants surged 14.5%, spending on fuel and convenience stores surged 11.9%, and spending on clothing increased 5.4%.

Both online and offline retail sales in the United States increased in December. Specifically, online retail sales increased by 9.7% year-on-year, and offline retail sales increased by 6.7% year-on-year.

A previous report from Mastercard Spending Pulse showed that inflation changed the way Americans shopped during the 2022 holiday season (November 1 to December 24).

“This year’s holiday season is different than in previous years,” said Steve Sadove, senior advisor at Mastercard. “Retailers are offering deep discounts, but consumers are diversifying their holiday spending as they seek to protect against price increases and meet post-pandemic needs for experiences and holiday gatherings.”

According to a PYMNTS survey of approximately 2,500 U.S. consumers, Americans are paying more attention to prices when shopping due to inflation and they hope to save money this holiday season.

The survey also found that two-thirds of holiday shoppers made at least one purchase on Black Friday 2022, a 3% increase from the same period in 2021, thanks to retailers offering early discounts.

In addition, half of the respondents said they are cutting back on holiday spending due to poor financial conditions, and some even said they will not shop during the holidays.

It is reported that among consumers who plan to shop, about half of them use credit cards, loans or buy now, pay later (BNPL) payment methods. This means that about 98 million American consumers plan to use one of these payment methods to make at least one holiday purchase.

Editor ✎ Nicole/

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