The 2024 holiday shopping season delivered strong retail sales growth, driven by a surge in online shopping and a resilient U.S. consumer base. Mastercard SpendingPulse reports that retail sales (excluding automotive) rose 3.8% year-over-year from November 1 through December 24, with online sales spearheading the trend with a notable 6.7% growth compared to 2023.
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E-Commerce Leads the Charge
Online shopping proved pivotal in the 2024 holiday season, outpacing in-store growth and showcasing the continued shift in consumer preferences. According to Mastercard SpendingPulse, e-commerce sales climbed by 6.7% year-over-year, while in-store sales saw a 2.9% increase.
The apparel sector was a standout performer in e-commerce, also growing 6.7% online compared to last year. Cities like Tampa (10.6%), Phoenix (10.0%), and Minneapolis (8.9%) led the nation in e-commerce growth, far exceeding the national average.
Promotional events like Super Saturday (December 21) played a crucial role, with the final five days of the season accounting for 10% of total holiday spending.
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Increased Spending on Goods and Experiences
Beyond online shopping, the 2024 holiday season saw solid spending across key categories:
- Jewelry: Up 4.0% year-over-year
- Apparel: Grew 3.6%, fueled by online sales
- Electronics: Increased 3.7%, highlighting its appeal for gift-giving
Notably, consumers also prioritized experiences, with restaurant spending rising 6.3% during the holiday period. Mastercard attributed this to a broader trend of consumers valuing dining and leisure experiences alongside traditional gift-giving.
Black Friday Sets the Tone
Earlier in the season, Black Friday sales demonstrated the robust consumer appetite. Mastercard SpendingPulse reported a 3.4% year-over-year increase, with online sales soaring 14.6% and in-store sales edging up by 0.7%. These trends carried through to the end of the season, underscoring the importance of digital channels and promotional events.
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What’s Driving Consumer Confidence?
The holiday shopping trends reflect a strong U.S. consumer supported by favorable economic conditions. Michelle Meyer, Chief Economist at Mastercard Economics Institute, noted, “Solid spending during this holiday season underscores the strength we observed from the consumer all year, supported by the healthy labor market and household wealth gains.”
While shoppers embraced value-driven deals, the overall willingness to spend demonstrates confidence in personal finances, even amid rising prices.
Key City Trends
Certain U.S. cities experienced double-digit e-commerce growth compared to 2023:
- Tampa: +10.6%
- Phoenix: +10.0%
- Minneapolis: +8.9%
- Dallas: +8.4%
These markets, along with Orlando, Charlotte, and Houston, highlight the regional variations in spending habits, with Southern and Western cities showing particularly strong growth.
Looking Ahead
The 2024 holiday season reaffirms the evolving dynamics of retail, where e-commerce continues to dominate, and consumers balance goods with experiences. Retailers who capitalized on major promotional periods and digital-first strategies saw the greatest success, setting the tone for 2025.
As Mastercard SpendingPulse reveals, the U.S. consumer remains resilient, offering a solid foundation for continued growth in the retail sector. With innovation and value-driven offerings, businesses can look forward to sustaining this momentum into the new year.
