Investing.com -- U.S. retail sales rose 3.8% during the holiday season, Mastercard Inc (NYSE:MA) SpendingPulse said on Tuesday, driven by consumer demand and value-seeking behaviours. The report, which tracks in-store and online sales across all payment types, highlighted strong consumer spending despite inflationary pressures.
Online sales grew 6.7% year-over-year, outpacing the 2.9% increase in in-store purchases. Apparel, jewelry, and electronics saw notable gains.
The final five days of the season accounted for 10% of holiday spending, highlighting strong last-minute shopping activity.
“The holiday shopping season revealed a consumer who is willing and able to spend but driven by a search for value as can be seen by concentrated e-commerce spending during the biggest promotional periods,” said Michelle Meyer, chief economist, Mastercard Economics Institute.
Retailers balanced brick-and-mortar and online strategies to meet demand, said Steve Sadove, Mastercard senior advisor.
"This holiday season, we saw consumers motivated by deals and retailers respond with promotions to meet the demand,” said senior advisor for Mastercard.