Mastercard Holiday Numbers Roses for eCommerce, In-Store Accelerated Too
Consumers respond to discounts. More consumers respond to deeper discounts and will wait for said discounts to appear.
What are the key takeaways from Mastercard SpendingPulse data?
According to Mastercard SpendingPulse:
2024 Nov 1 - Dec 4 sales increased by 3.8% y/y. Online retail sales grew 6.7% year-over-year, while in-store sales rose by 2.9%.
How does this compare to the 2023 holiday season?
2023 sales increased by 3.1% during the same 2023 holiday season (November 1 through December 24). Online retail sales grew by 6.3% year-over-year, while in-store sales rose by 2.2%.
In short, in-store sales growth accelerated faster this holiday season, much more than history would tell us. Some analysts I trust reported that in-store sales might bump due to the short holiday season. Those predictions turned out to be correct.
What motivated consumers during the 2024 holiday season?
When faced with short time, you either go online to the place with fast shipping, or you are motivated to go closer to you.
Why did in-store sales see a stronger acceleration?
A few theories:
Faced with a short time, consumers seemed to follow the selection and the discounts.
Some stores likely had trouble keeping items in stock. Target may have been among those affected.
Fast shipping counts during the holidays, particularly in a compressed period. Supply chain counts.
Accurate inventory on websites showing what's in store also counts during the holiday period. This is something many businesses will need to continue improving in 2025.
What are the predictions for key retailers in Q4?
Lastly, I predict that Amazon, Walmart, and Shopify are going to roll this Q4 earnings report. Get ready.
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