U.S. Holiday Retail Sales Climb 3.9% YoY as Consumers Embrace Omnichannel Shopping

Mastercard SpendingPulse has released preliminary data on U.S. holiday shopping patterns, revealing a year-over-year growth of 3.9% in retail sales excluding the automotive sector through December 21. The data underscores a fundamental shift in how American consumers approach holiday shopping in 2025.

Consumer Behavior Reshapes Retail Landscape

The standout trend this season has been the rise of strategic, omnichannel shopping behavior. Rather than committing to single-channel purchases, shoppers have adopted a hybrid approach—browsing online for deals and comparisons while visiting physical stores to examine products before buying. This dual-channel strategy has delivered measurable results, with online sales posting an 8.5% increase year-over-year and brick-and-mortar locations rising 7% yoy.

The breakdown reveals distinct channel performance: ecommerce transactions jumped 7.4% while traditional in-store purchases advanced 2.9% yoy, indicating that digital platforms continue to capture significant share even as physical retail remains relevant for the tactile shopping experience.

Category-Specific Growth Drivers

Apparel emerged as a clear winner, recording a 7.8% surge attributed to seasonal weather patterns and promotional activity that incentivized wardrobe updates and gift purchases. The colder temperatures created urgency around seasonal clothing needs, while retailers’ holiday markdowns further accelerated buying decisions.

Jewelry showed more modest but steady growth at 1.6% yoy, while dining establishments proved resilient with restaurant spending climbing 5.2% year-over-year, suggesting consumers continue to view experiential spending and social dining as central to holiday celebration traditions.

Market Reaction

Following the data release, Mastercard Inc. (MA) shares traded at $575.31 in pre-market activity, declining marginally by 0.05% on the New York Stock Exchange.

Disclaimer: The views expressed are those of the source and do not necessarily reflect official positions of financial institutions or market exchanges.