Online shopping breaks records: holiday season in the US exceeds expectations
U.S. holiday sales in 2024 saw strong growth thanks to intense advertising campaigns and growing interest in online shopping. According to the Mastercard report, retail sales grew 3.8% between November 1 and December 24, beating expectations and results from last year. This trend shows that consumers are willing to spend but are increasingly looking for bargains.
The holiday season in the US is traditionally one of the most important times of the year for retailers. In 2024, it delivered better-than-expected results, with sales up 3.8% compared to 3.1% last year. The last phase of the season played a significant role, with the last five days before Christmas accounting for 10% of total holiday spending. These numbers also beat Mastercard's original September $MAforecast , which expected 3.2% growth.
The key role of e-commerce
Online shopping was once again the driver of growth. E-commerce sales grew 6.7%, up from 6.3% in 2023. The apparel category showed particularly strong demand, with low-cost e-commerce platforms such as Shein and Temu able to attract shoppers with attractive offers during Black Friday and Cyber Monday. The importance of these platforms shows that consumers are increasingly price-driven.
Competition between retail giants
Major retailers such as Walmart $WMT, Target $TGT and Amazon $AMZN have had to invest in aggressive advertising and bargains during this competitive season. According to Michelle Meyer, chief economist at the Mastercard Economics Institute, a key success factor was the ability to offer added value to customers. Consumers were willing to spend, but they were also very carefully considering where and on what to spend their money.
"Customers are not only willing to spend, but they are also looking for value, as evidenced by the increased concentration of online purchases during key discount periods," Meyer said.
The future of retail
Mastercard's SpendingPulse data, which includes sales in brick-and-mortar stores and online (excluding automotive), suggests that e-commerce will continue to grow. Retailers that want to succeed will need to strengthen their online platforms, and offering competitive pricing and fast delivery will be key.
The year 2024 confirmed that despite inflation and economic uncertainty, American consumers still have an appetite to spend - as long as they get the right value for their money.
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