Shoppers opened their wallets this holiday season as they have for much of 2023, even crowding into shopping malls to scoop up last-minute holiday gifts and discounts in the days before Christmas.
The Wall Street Journal reports U.S. retail sales rose 3.1% from Nov. 1 through Dec. 24, according to Mastercard SpendingPulse, which measures sales in stores and online. The estimate, which isn’t adjusted for inflation, reflects a year marked by rising prices and a strong U.S. job market.
After a busy Thanksgiving and Black Friday weekend, many consumers waited for the last minute to shop, expecting prices to drop and with a full weekend before Christmas. Some analysts estimated Saturday, Dec. 23, was the biggest sales day of the year—topping Black Friday.
“Without concerns about supply or feeling like they will miss deals, they don’t have a reason to spend earlier,” said Marshal Cohen, chief retail industry adviser for Circana.
Online retail sales increased 6.3% year over year, while in-stores sales rose 2.2%, according to Mastercard SpendingPulse, which excludes automobile purchases and travel services. There were pockets of weakness, with sales of electronics and jewelry declining year over year from Nov. 1 through Dec. 24. The strongest category of growth was in restaurants, as people dined out and menu prices were higher.
Strong spending, especially on travel and dining, helped buoy the U.S. economy in 2023 even as the Federal Reserve pushed up interest rates to the highest levels in more than two decades. Spending eased in some categories, especially appliances and electronics, after many households splurged during the pandemic.
Retailers have given a mixed reading on the state of their businesses during the critical holiday season. Some stores have logged steady sales while others have cautioned that people are pulling back.
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