STORY: Steep discounts and a last-minute shopping surge boosted U.S. holiday sales above prior estimates.
That’s according to a report by Mastercard SpendingPulse, which said that holiday spending from Nov. 1 through Dec. 24 rose 3.8% compared to last year – more than previously forecast.
Continued consumer strength has been an ongoing theme in 2024, even in the face of sticky inflation and higher interest rates.
Still, many retailers described their customers as “selective,” “cautious” and “conservative” heading into the holiday season.
As a result, several stores doubled down on cutting prices and offering promotions.
Walmart, for example, said it would continue to bring down prices through temporary reductions, or rollbacks, and rival Target said ongoing promotions were needed to keep shoppers engaged.
Dollar General said it expects profits to be pressured from increased promotions in the fourth quarter.
And Kroger and Five Below also said they had to reduce prices to be competitive.
Online sales rose at double the pace of sales at physical stores, continuing a trend of digital-first shopping.
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That’s according to Steve Sadove, senior adviser to Mastercard and former Saks CEO and chairman.
Retailers also experimented with generative AI for customer service and product search, and tried to improve curbside pick-up and delivery services as they jostled to offer a smooth shopping experience.
