U.S. retail sales, excluding automotive, increased 7.6 percent year-over-year this holiday season, according to a report from Mastercard SpendingPulse* measuring the period from November 1 through December 24. The results came at the top end of the National Retail Federation’s forecast growth in the 6 percent to 8 percent range and topped Mastercard’s forecast calling for a 7.1 percent increase.

The results fell short of last year’s 8.5 percent gain despite high single-digit inflation this year.

“This holiday retail season looked different than years past,” said Steve Sadove, senior advisor for Mastercard and former CEO 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.”

Key trends this holiday season included:

  • E-commerce shoppers ‘add to cart’: Preliminary insights show that online sales grew 10.6 percent compared to the same period last year. E-commerce made up 21.6 percent of total retail sales, up from 20.9 percent in 2021 and 20.6 percent in 2020. The channel continues to experience high growth as consumers prioritize convenience and the availability of discounts.
  • Weekend shopping reigned supreme: Black Friday remained the top spending day of the 2022 holiday season, up +12 percent year-over-year, excluding automotive, followed closely by Saturdays in December.
  • Ringing in the holidays in restaurants: In-person dining continued its momentum, with restaurants up 15.1 percent year-over-year. 

“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.”

*Mastercard SpendingPulse measures in-store and online retail sales across all forms of payment and is not adjusted for inflation.