Sept 19 Reuters U.S. retail sales are expected to rise 3.2 in the holiday season as companies look to deals to attract thrifty shoppers during a shorterthanusual shopping window this year, a Mastercard forecast showed on Thursday.

In comparison, retail sales rose 3.1 between Nov. 1 and Dec. 24 of 2023, according to the report from Mastercard Economics Institute. Mastercard SpendingPulse measures instore and online retail sales across all forms of payment, excluding automotive sales.

WHY IT39;S IMPORTANT

With consumers expected to be picky about their spending this year, retailers from Walmart and Target to Amazon.com and China39;s Shein and PDD Holdingsowned Temu are all likely to roll out aggressive deals.

Inflation continues to cool and consumers continue to expect and demand promotions and discounts. Discounts and promotions are no longer just 39;nice to have39;; they are essential, the report said.

A smaller shopping window this year with only 27 days between Thanksgiving and Christmas could also push retailers into launching higher promotions earlier in the season.

A Deloitte forecast showed U.S. holiday sales are expected to grow at their slowest pace in six years.

BY THE NUMBERS

Online sales are expected to jump 7.1 during the holiday season from last year, according to the Mastercard report.

Spending on bigticket electronics including television and laptops could rise 6.7, boosted by lower borrowing costs, cheaper prices and the replacement of older…