Retailers Have a Joyous Season

Driven by promotions and discounts, retail holiday shopping increased 3.8% this year over last, according to data released Thursday. The finding tops forecasts from Mastercard and the National Retail Federation, the Washington Post reports. The Mastercard SpendingPulse measured online and in-store sales, involving various forms of payment, from Nov. 1 to Dec. 24. The increase makes sense, the Mastercard Economics Institute's chief economist said. "Solid spending during this holiday season underscores the strength we observed from the consumer all year," said Michelle Meyer, "supported by the healthy labor market and household wealth gains."

Online shopping had the biggest boost, a 6.7% rise compared with 6.3% in 2023, per USA Today. In-person sales were up 2.9%. Clothing, accessories, electronics, and jewelry did well. Electronics sales were up nearly 4%, Mastercard reported, possibly in anticipation of President-elect Trump's imposition of tariffs. Visa economists also reported this week that sales grew more than expected—4.8% over last year in the seven weeks starting Nov. 1, per the Post. "We saw consumers motivated by deals and retailers respond with promotions to meet the demand," said Steve Sadove, a Mastercard senior adviser and former chief executive of Saks. (More holiday shopping stories.)