Mastercard SpendingPulse: U.S. Retail Sales Expected to Grow 3.7%* This Holiday Season
September 19 2023 - 6:01AM
Business Wire
This holiday season, running November 1 through December 24,
U.S. retail sales excluding automotive are expected to increase
3.7% year-over-year (YOY), according to Mastercard SpendingPulse™.
The anticipated growth in retail in the U.S. reinforces continued
consumer resilience. Mastercard SpendingPulse measures in-store and
online retail sales across all forms of payment and is not adjusted
for inflation.
Looking back at the 2022 holiday shopping season, inflationary
pricing and pent-up demand, coupled with excess savings and rising
wages allowed consumers and retailers to navigate the season well.
After years of inventory and spending habits being in flux, the
2023 season will bring a broader rebalancing across categories,
channels, and sectors in alignment with macroeconomic trends.
“While the consumer of holidays past may have been a consumer
trying to find footing in a rapidly shifting economy, the consumer
of holidays present has taken their power back,” said Michelle
Meyer, U.S. Chief Economist, Mastercard Economics Institute. “We
expect these individuals to impressively navigate the holiday
season, making choices and trade-offs that best suit their
lifestyles.”
Key trends to watch in 2023 include:
- Spreading Cheer Across Channels: While digital shopping
habits became the new normal during the pandemic, this season’s
shopper is looking to make purchases anytime, anywhere – in-store
and online. With this omnichannel approach in mind, consumers are
anticipated to shop across channels, with e-commerce expected to
increase +6.7%, and in-store sales to increase +2.9% YOY.
- Tech the Halls: Electronics, gadgets and gaming might be
at the top of many wish lists this year as AI, immersive
experiences and digital workspaces continue to evolve the way we
work and play. Further, consumers who purchased new gadgets during
the pandemic could be looking to upgrade to the latest model.
Electronics are anticipated to increase +6.0% YOY this season.
- Festive Feasting: The Restaurant sector is expected to
continue its growth streak, increasing +5.4% YOY and outpacing
Grocery growth (+3.9%), as consumers make plans to gather around
tables and with loved ones for shared meals, activities, and
festivities outside of the home.
“This holiday season, retailers will be vying for consumer
dollars. With numerous choices and tightening budgets, you can
anticipate shoppers to be increasingly selective and
value-focused,” said Steve Sadove, senior advisor for Mastercard
and former CEO and Chairman of Saks Incorporated. “We expect the
most effective holiday strategy will be to meet consumers where
they are – personalized promotions to in-store experiences will be
key in doing so.”
Mastercard SpendingPulse Anticipated
U.S. Holiday Retail Sales November 1 – December 24, 2023 vs.
2022
Total Retail (ex. Auto)
+3.7%
E-commerce
+6.7%
In-Store
+2.9%
Apparel
+1.0%
Electronics
+6.0%
Grocery
+3.9%
Jewelry
-0.3%
Restaurants
+5.4%
Source: Mastercard SpendingPulse, which
measures overall retail sales across all payment types, including
cash and check.
For additional holiday insights check-out the latest blog from
the Mastercard Economics Institute on the US consumer: Holiday
spending 2023: Meet this year’s holiday shopper.
*Total retail sales exclude automotive sales and measure the
traditional holiday season defined November 1 – December 24
About Mastercard SpendingPulse Mastercard SpendingPulse
reports on national retail sales across all payment types in select
markets around the world. The findings are based on aggregate sales
activity in the Mastercard payments network, coupled with
survey-based estimates for certain other payment forms, such as
cash and check.
Mastercard SpendingPulse defines “U.S. retail sales” as sales at
retailers and food services merchants of all sizes. Sales activity
within the services sector (for example, travel services such as
airlines and lodging) are not included in the total retail sales
figure. SpendingPulse insights are not indicative of Mastercard
company performance; insights and forecast are subject to
change.
About Mastercard (NYSE: MA) Mastercard is a global
technology company in the payments industry. Our mission is to
connect and power an inclusive, digital economy that benefits
everyone, everywhere by making transactions safe, simple, smart and
accessible. Using secure data and networks, partnerships and
passion, our innovations and solutions help individuals, financial
institutions, governments and businesses realize their greatest
potential. With connections across more than 210 countries and
territories, we are building a sustainable world that unlocks
priceless possibilities for all.
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Alexandria Pierroz Alexandria.Pierroz@mastercard.com
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