Price-conscious holiday shoppers turned to online discounts for clothing and stocking stuffers, favoring free delivery and curbside pickup. The convenience of online shopping, coupled with competitive prices and services like “buy online, pick up in-store” (BOPIS), drove a surge in e-commerce.
Michael Schulman of Running Point Capital Advisors attributed the trend to a shortened holiday season, with only 27 days between Thanksgiving and Christmas. This left less time for in-store shopping, pushing consumers toward online purchases. Retailers like Walmart and Target leaned into promotions and increased ad spending on platforms like TikTok and Hulu to attract cautious and selective shoppers.
According to Mastercard SpendingPulse, online sales from Nov. 1 to Dec. 24 grew by 6.7%, compared to a 2.9% rise in in-store sales, contributing to a total spending increase of 3.8% over 2023. Categories like apparel, jewelry, and electronics saw notable growth, with online apparel sales climbing 6.7%.
Promotions were disciplined, with no steep discounts or panic deals. Retailers like Target and Dollar Tree saw stock gains, while Walmart remained flat. Salesforce reported that BOPIS orders made up nearly 40% of online purchases in the final weekend before Christmas.
Consumer spending stayed resilient, buoyed by low unemployment and higher wages, said Steve Sadove, senior adviser to Mastercard. Items like laptops, TVs, lab-grown diamonds, and athleisure wear fueled sales, while Huntsville resident Aireale Hobbs praised the convenience and deals of online shopping.
With strong delivery volumes and a late-season sales surge accounting for 10% of holiday spending, retailers capitalized on last-minute demand to end the season on a high note.
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