The 2022 holidays marked another positive season for retail, with consumers continuing to prioritize experiences over physical goods. U.S. retail sales (excluding automotive) increased by 7.6% YOY, according to Mastercard SpendingPulse™. Mastercard SpendingPulse measures in-store and online retail sales across all forms of payment and is not adjusted for inflation. But what should retailers be considering as we move ahead in this uncertain economic climate?

Mastercard’s Holiday Season Recap & 2023 Outlook reviews top retail trends from the 2022 holiday season and looks forward at key macroeconomic factors and consumer spending behavior in 2023. The recap uncovers trends including:

• Consumer demand for experiences over goods
• Rising spend on travel and discretionary retail
• Increasing consumer expectations around personalization
• The growth of omnichannel retail

“This holiday retail season looked different than years past. Retailers discounted heavily but consumers diversified their holiday spending to accommodate rising prices and an appetite for experiences and festive gatherings post-pandemic,” said Steve Sadove, Senior Advisor for Mastercard and former CEO and Chairman of Saks Incorporated.