Holiday sales saw their strongest growth in six years this season, increasing 5.1% to more than $850 billion, according to Mastercard SpendingPulse. Online shopping achieved particularly large gains, with sales soaring 19.1% compared to 2017.
Mastercard SpendingPulse, which tracked shopping habits from Nov. 1 through Dec. 24, reported a bright season for retail overall, although some categories were more successful than others:
- Total apparel sales grew 7.9% compared to 2017, the highest rate of increase since 2010, thanks to sustained momentum that started during back-to-school;
- Home improvement spending grew 9%, also continuing a trend that started before the holiday season;
- Department store sales grew 10.2% online, despite an overall 1.3% decline for the category that was partially attributable to store closings;
- Electronics and appliances sales fell 0.7%; and
- Home furniture and furnishings sales grew 2.3% for the season.
Weather also had a negative impact on certain shopping days, though it wasn’t enough to offset the overall strong season. The East Coast was hit the hardest, facing cold weather on Black Friday, wet conditions Dec. 15 and 16 and storms on Dec. 21, but none of these issues were enough to overcome the strongest holiday season in years.
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“From shopping aisles to online carts, consumer confidence translated into holiday cheer for retail,” said Steve Sadove, Senior Advisor for Mastercard and former CEO and Chairman of Saks Inc. in a statement. “By combining the right inventory with the right mix of online versus in-store, many retailers were able to give consumers what they wanted via the right shopping channels.”
