Mastercard Reports Robust Holiday Retail Sales Growth Driven by Savvy Consumers and E-Commerce

Mastercard's latest SpendingPulse™ report, released on December 23, 2025, reveals a promising holiday season for U.S. retail, with sales excluding automotive increasing by 3.9% year-over-year from November 1 through December 21. This data, which encompasses both in-store and online sales across all payment types, indicates that consumers are increasingly confident and adaptive in their shopping habits, leveraging various channels to secure the best deals.

Michelle Meyer, chief economist for the Mastercard Economics Institute, noted that consumers displayed remarkable flexibility this season. "Shoppers embraced a blend of early shopping, strategic promotions, and a focus on meaningful experiences and wish-list items. The merger of online browsing with in-store shopping has become a hallmark of this holiday season, enabling consumers to maximize convenience and value," she stated.

With the holiday shopping season still in full swing, several key trends have emerged, reflecting the evolving behavior of consumers:

The report highlights a significant 7.4% increase in e-commerce sales, while in-store sales grew by 2.9%. This growth underscores the blurring lines between traditional and digital shopping experiences, as consumers continue to shop smartly across channels.

Apparel emerged as a standout category, with spending rising by 7.8%. Cold weather and seasonal promotions appeared to motivate consumers to refresh their wardrobes and purchase gifts. Notably, online apparel sales surged by 8.5%, with in-store sales also seeing a commendable 7.0% increase. Jewelry sales, while more modest, still saw a rise of 1.6%, indicating a continued interest in purchasing special gifts during the holiday season.

Consumer spending on dining out increased by 5.2%, reflecting a strong desire for shared experiences and festive gatherings during the holidays. This trend highlights the importance of social connections, as dining out becomes an integral part of holiday celebrations.

As retailers ramp up investments in artificial intelligence (AI), Mastercard's Economics Institute indicates that these advancements are reshaping the consumer shopping experience. The AI Enthusiasm Index from the Economic Outlook 2026 positions the U.S. as a global leader in AI investment and adoption, driving innovations from personalized shopping recommendations to enhanced inventory management. Such advancements cater to the convenience and value that consumers sought throughout the holiday season, promising a seamless shopping experience that aligns with the omnichannel behaviors observed.

As we move into the new year, the trends revealed in this report suggest a continuing evolution in retail dynamics, with deeper AI integration poised to further enhance the shopping landscape. As consumers become more accustomed to blended experiences, the retail sector must adapt to meet their changing preferences.

Mastercard SpendingPulse continues to be a valuable resource for understanding consumer behavior and retail trends, offering insights that can inform strategic decisions for businesses across the sector.

Mastercard SpendingPulse provides comprehensive insights into national retail sales based on aggregated and anonymized Mastercard data, covering all payment types in select markets. It defines U.S. retail sales as sales at retailers and food services of all sizes, excluding certain service sectors such as travel.

Mastercard stands as a global leader in digital payments, empowering individuals and businesses in over 200 countries and territories. Through innovation and collaboration, Mastercard is committed to building a resilient economy that fosters growth and prosperity for all.