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Holiday sales took off this year despite U.S. consumers’ weariness over inflation, The Wall Street Journal reports.
Higher-income households making more than $100,000 a year increasingly drove gains for holiday gifts, food and decorations. Meanwhile, lower-income Americans felt the pressure of higher prices for groceries, child care and other monthly expenses.
Consumers in the U.S. spent 3.8% more from Nov. 1 through Dec. 24 than they did in the same period last year, according to Mastercard SpendingPulse, which excludes auto sales.
The gains were boosted by restaurant spending, which increased 6.3% in the period compared with last year. Online retail sales rose 6.7% year over year, while in-store sales increased 2.9%.
Josh Holder, owner of Time Warp, a Baton Rouge vintage boutique and gift shop, says this November’s sales were up 20% from last year. He anticipates the week after Christmas to be even busier.
“This week is when we are the busiest,” Holder says. “It’s kind of combined with our holiday season shopping because everyone comes to shop with their Christmas money. I’m preparing for one of the largest weeks this week.”
Much like national trends, Holder says consumers were more likely to buy higher-ticket items this holiday season. He says specialty items sold well this year and he has “had no problem selling anything for $300 both online and in-person.”
Not every retailer has had a profitable year. The Container Store and Party City chains both filed for bankruptcy protection in the days before Christmas, while the founding family of Nordstrom made a deal to take the struggling department store private.
