According to preliminary data released by Visa and Mastercard, retail sales in the United States (US) recorded an increase of 4% during the holiday season this year.
The data shows that Americans managed to balance their budgets better and still meet the need to upgrade electronic devices, as well as refresh their clothing collections.
Visa Chief Economist Wayne Best explained that consumers are now more cautious in making any purchases.
He also noted that investors are using artificial intelligence (AI) technology to find and compare prices of goods, thus maximizing the value of their spending.
Meanwhile, Mastercard Chief Economist Michelle Meyer informed that consumers start shopping earlier and rely on promotions to get the best deals.
Retailers also launched early promotions as a strategy to ensure sales remain stable in the run-up to the Christmas holiday season, despite the challenges of lower consumer confidence and the inflationary impact of US trade tariffs.
Data from Cyber Week shows that consumers are less affected by economic concerns with spending increasing until December.
Meanwhile, Visa reported that total retail spending in the US excluding autos, gasoline and restaurants rose 4.2% between November 1 and December 21, slightly below its initial forecast of 4.6% for the full two-month period.
Mastercard reported a 3.9% year-on-year increase in sales during the same period, beating its initial estimate of 3.6%.
Both companies stressed that early promotions and the convenience of online shopping played a key role in boosting e-commerce sales, which are growing faster than brick-and-mortar stores.
However, Visa said brick-and-mortar stores still dominate, accounting for 73% of total transactions compared to 27% online.
