U.S. Holiday Sales Gain 3.9% As Consumers Shop Early, Dine Out.

U.S. retail sales excluding automotive rose 3.9% on a year-over-year basis during the holiday shopping season, driven by strong e-commerce growth, steady in-store spending and increased dining out, according to preliminary data from Mastercard SpendingPulse.

Sales increased from Nov. 1 through Dec. 21 as consumers began shopping early, blending online and in-person purchases throughout the season. Mastercard SpendingPulse tracks in-store and online retail sales across all forms of payment and 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. They also blended online and in-store shopping to find the best deals and maximize convenience,” said Michelle Meyer, Chief Economist at the Mastercard Economics Institute.

E-commerce sales rose 7.4% vs. the same period last year, outpacing a 2.9% increase in in-store sales. The data reflects a growing convergence of shopping channels, as many consumers combined online browsing with store visits to compare prices, secure promotions and complete purchases.

Apparel was among the strongest categories, with spending climbing 7.8% year over year. Mastercard attributed the increase in part to colder weather and seasonal promotions that encouraged both gift buying and wardrobe updates. Online apparel sales rose 8.5%, while in-store apparel sales increased 7%, suggesting shoppers used digital platforms for inspiration and price comparisons before purchasing in stores. Jewelry sales also rose modestly, increasing 1.6% during the period.

Spending at restaurants increased 5.2%, underscoring the role of dining out as part of holiday celebrations. Mastercard said the growth reflects continued consumer interest in experiences and shared moments, from celebratory meals to casual gatherings, alongside traditional gift purchases.

The company said advances in artificial intelligence are increasingly shaping consumer shopping experiences. According to the Mastercard Economics Institute’s AI Enthusiasm Index in its Economic Outlook 2026, the U.S. leads globally in AI investment and adoption, influencing areas such as personalized recommendations and inventory management. Mastercard said those innovations helped retailers meet consumer demand for convenience and value during the holiday season and are expected to further support omnichannel shopping in the future.