According to a Mastercard SpendingPulse report, online spending during the holiday shopping period from Nov 1 to Dec 24 grew by neary 6.7% over last year, compared to a 2.9% increase for in-store sales, reported Reuters on Dec 26.
Online sales of apparel, in particular, grew 6.7%, compared to 0.2% in stores.
Sales in the apparel, jewelry and electronics categories were up 3.6%, 4% and 3.7%, respectively over last year, according to Mastercard.
This contributed to a total spending increase of 3.8% over 2023, surpassing the previously forecast rise of 3.2% and topping the 3.1% increase during the same period last year.
Mastercard told Reuters that spending rose even when higher prices due to inflation were factored in, adding that sales during the last five days of the holiday season accounted for 10% of all holiday spending.
Retailers described their consumers as "selective," "cautious" and "conservative," and making "needs-based" purchases. As a result, many retailers doubled down on cutting prices and offering promotions.
Walmart said it would continue to bring down prices through rollbacks, while rival Target said it would increase its promotional intensity as shoppers were not as engaged without promotions.
Walmart and Target to reach shoppers on short-video app TikTok and streaming platforms like Peacock and Hulu during the season, highlighting their membership programs that offer quick delivery and Buy Online, Pickup in Store (BOPIS) shopping portal.
The popularity of online shopping has surged due to its convenience, similar or lower prices than in-store, the availability of services like BOPIS, noted a retail expert.
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