The U.S. holiday shopping season proved resilient in 2024, with retail sales climbing 3.8% year-over-year, driven by consumer demand for value and the convenience of online shopping. Mastercard SpendingPulse™ released its preliminary findings, showcasing the evolving preferences of shoppers during the festive season, particularly toward e-commerce, which surged 6.7% compared to last year.
Consumer Behavior Signals Resilience
“The holiday shopping season revealed a consumer who is willing and able to spend but driven by a search for value,” stated Michelle Meyer, Chief Economist at Mastercard Economics Institute. Meyer highlighted that promotional events, such as Black Friday and Cyber Monday, acted as significant catalysts for spending, bolstered by a strong labour market and rising household wealth.
Solid spending throughout the season underscores the adaptability of consumers and retailers alike. From November 1 to December 24, consumers showcased a balanced approach to holiday purchases, seamlessly blending in-store experiences with the ease of online transactions.
Key Retail Trends of the Season
- Promotional Periods Drive Value-Oriented Shoppers
Promotions dominated the November shopping landscape, particularly during Black Friday and the final days before December 24. The last five days of the season accounted for a remarkable 10% of total holiday spending, reflecting shoppers’ penchant for last-minute deals and offers. - Dining Out and Gifting Go Hand-in-Hand
Beyond material gifts, experiences such as dining out witnessed robust growth, with restaurant spending up 6.3% year-over-year. Meanwhile, traditional gift categories like apparel (3.6%), jewellery (4.0%), and electronics (3.7%) also performed well, indicating a broad distribution of consumer interests. - E-Commerce Dominates Holiday Preferences
Digital-first shopping was the season’s hallmark, with online retail sales growing 6.7%. Consumer reliance on curbside pickup and home delivery underscored a shift toward convenience. Notably, apparel led e-commerce categories, with a 6.7% increase in online purchases compared to 2023. - Top Cities Embrace E-Commerce Growth
Several U.S. cities exhibited exceptional growth in online shopping, outpacing the national average. Tampa (10.6%) and Phoenix (10.0%) emerged as frontrunners, with Minneapolis (8.9%), Dallas (8.4%), and Charlotte (7.9%) not far behind. These cities exemplify a growing trend toward digital-savvy shopping practices.
Retailers Adapt to Changing Preferences
Retailers played a critical role in meeting consumers’ demand for value, offering promotions and integrating omnichannel strategies to capture attention across platforms.
“This holiday season, we saw consumers motivated by deals and retailers respond with promotions to meet the demand,” said Steve Sadove, Senior Advisor for Mastercard and former CEO of Saks Incorporated. “The value-minded consumer showed up to shop at brick-and-mortar stores and e-commerce platforms, with retailers managing across both to capture attention throughout the season.”
What Lies Ahead for Retail
The data underscores a notable shift in consumer behaviour, with value and convenience becoming primary drivers. As e-commerce continues gaining ground, retailers must invest in digital infrastructure and promotional strategies to remain competitive in 2025.
Mastercard SpendingPulse™ remains a critical resource for understanding these trends, offering insights into how American consumers navigate the evolving retail landscape.
For the full Mastercard SpendingPulse report and methodology, visit Mastercard SpendingPulse.
Written by: Anne Keam
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