Big discounts attracted holiday shoppers this year, leading to strong retail sales.
- U.S. retail sales had a 7.6% year-over-year jump this holiday season, according to Mastercard Incorporated’s holiday sales data.
- Despite inflation affecting retail prices, many consumers were pulled into stores by significant discounts between November 1 and December 24.
- E-commerce sales rose 10.6% year over year, in-store sales grew 6.8%, restaurant sales increased 15.1%, apparel stores 4.4%, and department stores grew 1%.
Why it’s news
Despite many consumers being affected by high inflation prices, holiday sales were strong this year.
Mastercard Incorporated’s data show that U.S. retail sales had a 7.6% year-over-year jump this holiday season. The jump was higher than Mastercard’s original expectation of 7.1% but lower than last year’s 8.5% growth.
Rising costs brought on by inflation kept many shoppers wary, but many stores offered big discounts that pulled shoppers in.
E-commerce sales rose 10.6% year over year, in-store sales grew 6.8%, restaurant sales grew 15.1%, apparel stores 4.4%, and department stores grew 1% for this holiday season. Although those areas saw increases, electronics and jewelry sales fell 5.3% and 5.4% year over year.
Many stores had an excess inventory this year after being affected by supply-chain issues the past few years. To get rid of the large amounts of built-up stock, stores added hefty discounts, bringing many shoppers in.