U.S. holiday shoppers in 2025 leaned into value, convenience, and experiences, driving a solid uplift in retail sales that favored e-commerce, apparel, and dining, while reinforcing an omnichannel norm. The latest Mastercard SpendingPulse™ readout paints a picture of a consumer who is cautious yet confident, selectively trading up on fashion, jewelry, and meals out when the price and timing feel right.
Holiday sales performance
According to preliminary Mastercard SpendingPulse™ data, U.S. retail sales excluding automotive rose by 3.9% year over year from November 1 through December 21 2025. The metric captures in-store and online sales across all payment types and is not adjusted for inflation, giving a nominal view of how much consumers actually spent at retail and food service merchants.
U.S. holiday momentum was strong enough that the Mastercard U.S. Santa Tracker flagged growth with several shopping days still to go, suggesting that last-minute activity could add further upside to the season’s final tally. Importantly, “retail” in this dataset includes retailers and food services but excludes most other services, such as airlines and lodging, so the 3.9% reflects core consumer-facing commerce rather than travel.
Savvy value hunting across channels
The defining shopper behavior of 2025 was the rise of the “savvy” consumer who plans ahead, cross-checks prices, and fluidly switches between channels. Michelle Meyer, chief economist at the Mastercard Economics Institute, said, “Consumers demonstrated flexibility and confidence this season, shopping early, leveraging promotions, and investing in meaningful experiences and wish-list items.”
E-commerce captured a notable share of that smart spending, with online sales surging by 7.4% compared to the prior year. Brick-and-mortar remained highly relevant, as in-store sales still grew by 2.9%, revealing a blended path where shoppers browse online for inspiration and price checks before sealing the deal in person.
Fashion, sparkle, and self-gifting
Fashion was a clear winner in the 2025 holiday mix, reflecting both gifting and self-treating behavior. Overall apparel spending climbed by 7.8%, boosted by chilly weather and seasonal deals that nudged shoppers to refresh winter wardrobes.
The apparel story was strongly omnichannel. Online apparel sales increased by 8.5%, while in-store apparel spending rose by 7.0%, confirming that shoppers still want to touch, feel, and try on key items before buying. Jewelry also posted growth, with spending up 1.6%, as consumers selectively invested in “sparkly” pieces that carry emotional weight but remained mindful of budgets.
Dining out as a core tradition
Experiential spending remained a bright spot, particularly in restaurants, underscoring a desire for social connection around the holidays. Restaurant spending grew by 5.2%, signaling that dining out has become a standard part of holiday rituals, from big celebratory dinners to casual meetups.
This appetite for shared experiences complements, rather than replaces, spending on goods. The pattern suggests that even as consumers watch their wallets, they continue to carve out room in their budgets for memory-making moments with friends and family.
AI’s growing role in holiday retail
Behind the scenes, AI is already reshaping how shoppers discover products and how retailers manage demand. The Mastercard Economics Institute AI Enthusiasm Index in its Economic Outlook 2026 highlights the U.S. as a global leader in AI investment and adoption, with applications ranging from tailored product recommendations to more precise inventory planning.
These tools help retailers deliver the convenience and value that 2025 holiday shoppers clearly prioritized, whether through better assortment, smarter promotions, or smoother checkout experiences. As AI becomes more deeply embedded in retail operations, it is likely to reinforce the omnichannel habits seen this season, making it easier for consumers to move between digital and physical touchpoints without friction.
