Retail sales in the jewelry category in the United States witnessed a 2% year-on-year decline, as reported by data providers. While this represents a decrease, it is notably softer than last year’s 5.4% drop, which was influenced by high inflation and a shift towards spending on experiences.
Michelle Meyer, Chief Economist for Mastercard Economics Institute, commented on the consumer behavior during this holiday season, stating, “This holiday season, the consumer showed up, spending in a deliberate manner.” Meyer highlighted the favorable economic backdrop, with healthy job creation and easing inflation pressures, empowering consumers to seek the goods and experiences they value.
Overall retail spending, excluding automotive sales, witnessed a 3.1% year-on-year increase over the two months. E-commerce saw significant growth at 6.3%, while in-store purchasing advanced by 2.2%. Despite the faster pace of online spending, physical locations still constitute a “considerably larger” portion of total retail purchases, according to Mastercard.
Apart from jewelry, electronics experienced a decline of 0.4% year on year. On the positive side, spending at restaurants surged by 7.8%, apparel gained by 2.4%, and grocery expenditures were up by 2.1%.
Steve Sadove, Senior Adviser for Mastercard, highlighted that retailers initiated promotions early in the season, allowing consumers time to hunt for the best deals. He noted, “Ultimately, it was about getting the most bang for your buck as consumers spent on a variety of goods and services, resurfacing spending trends from before the pandemic.” The strategic approach of early promotions and consumer focus on value contributed to a varied spending pattern during the holiday season.
