Consumer spending posts healthy gains during holiday season

Retail sales, excluding automotive, posted a 3.9 percent gain year-over-year, between Nov. 1 and Dec. 21, 2025, according to Mastercard. The leading card brand keeps tabs on retail spending, across all payment types, both online and in-store, reporting results in a format it calls SpendingPulse. The data, reported as preliminary results, is not adjusted for inflation.

"Consumers demonstrated flexibility and confidence this season, shopping early, leveraging promotions, and investing in meaningful experiences and wish-list items," said Michelle Meyer, chief economist at Mastercard Economics Institute. "They also blended online and in-store shopping to find the best deals and maximize convenience."

While consumers did a lot of early holiday shopping, that didn't keep them from adding to their purchase totals in the final days leading up to Christmas. According to research by the National Retail Federation and Prosper Insights & Analytics nearly 159 million consumers planned to shop on Dec. 20, the Saturday before Christmas, which the trade group dubbed "Super Saturday." Last year just over 157 million shoppers hit the stores and went online to shop the Saturday before Christmas.

"Super Saturday is a significant shopping event for both consumers and retailers," said Katherine Cullen, NRF vice president of industry and consumer insights. Cullen said consumers were expected to shop across all types of retailers and channels for last-minute purchases.

Online up 7.4 percent, in-store 2.9 percent

Consumers didn't just hunt for deals, they shopped smart across channels, with many combining in-store visits with online browsing to secure the best promotions and maximize convenience, Mastercard's data revealed. Ecommerce sales surged 7.4 percent year over year, while in-store sales grew 2.9 percent, underscoring the convergence of blended shopping experiences.

Warmth was a theme for gifting, as was style. Apparel spending climbed 7.8 percent, Mastercard reported. Consumers embraced an omnichannel approach, with online apparel sales up 8.5 percent and in-store sales rising 7.0 percent. Mastercard said many consumers browsed online for inspiration and price comparisons, then headed out to stores to try on and purchase items.

Restaurant spending grew 5.2 percent, highlighting consumers' continued appetite for experiences and shared moments during the festive season. From celebratory dinners to casual outings, dining out has become an integral part of holiday traditions, signaling that consumers value connection along with tangible gifts, Mastercard noted.

AI shapes consumer experiences

Consumers are taking to artificial intelligence as businesses accelerate their investments in AI technology. According to the Mastercard Economics Institute's AI Enthusiasm Index the U.S. is a leader in AI investment and adoption – a trend that influences everything from personalized shopping recommendations to smarter inventory management.

"These innovations help retailers deliver the convenience and value consumers sought this holiday season," Mastercard said in a statement. Looking ahead, deeper AI integrations are expected to make shopping even more seamless and experiential, reinforcing the omnichannel behaviors that were apparent this holiday shopping season.

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