Mid-Single Digit Gains for Holiday Retail Sales 2022

Soaring inflation kept consumers from spending as much as they would have liked for much of the year. And in the runup to Christmas 2023, shoppers were forced to contend with cyclone bombs and other forms of poor weather in much of the US. In fact, 183 million Americans fell under wind chill advisories the week leading up to Christmas.

As a result, retailers posted mid-single digit sales gains for Holiday 2023. Experts warn they’re also facing excess inventories and slim margins. Still, some categories fared better than others. Among the winners? Cosmetics and fragrances. Moreover, the increases were better than what consumers said they planned to spend during the holidays. 

On Monday, Mastercard SpendingPulse reported that US retail sales, excluding automotive, increased 7.6% year-over-year this holiday season, running from November 1 through December 24. Mastercard SpendingPulse measures in-store and online retail sales across all forms of payment and is not adjusted for inflation.

“This holiday retail season looked different than years past,” said Steve Sadove, senior adviser for Mastercard and former chief executive officer and chairman of Saks Inc. “Retailers discounted heavily but consumers diversified their holiday spending to accommodate rising prices and an appetite for experiences and festive gatherings post-pandemic.”

According to Mastercard’s preliminary figures, online sales grew 10.6 percent compared to the same period last year and represented 21.6 percent of total retail sales, up from 20.9 percent in 2021 and 20.6 percent in 2020.

Black Friday was the top spending day of the 2022 holiday season, up 12 percent year-over-year, excluding automotive. This was followed closely by Saturdays in December, Mastercard indicated.
“Building on the ongoing demand for experiences, in-person dining continued to show strong momentum with restaurants up 15.1 percent, year-over-year,” said Sadove.

“Inflation altered the way U.S. consumers approached their holiday shopping — from hunting for the best deals to making trade-offs that stretched gift-giving budgets,” said Michelle Meyer, North America chief economist, Mastercard Economics Institute. “Consumers and retailers navigated the season well, displaying resilience amid increasing economic pressures.”