Steep discounts, higher promotions boost holiday spending
Shoppers buy more online, with spending up 6.7 from last year
Customers splurge on apparel, jewelry and electronics for gifts

Dec 26 Reuters Holiday shoppers opened their wallets at the last minute in search of good deals on online platforms, making significant purchases in apparel, electronics and jewelry, in a sign that household finances remain healthy.

Spending during the holiday shopping period of Nov. 1 to Dec. 24 rose 3.8 over 2023, said a Mastercard SpendingPulse report, compared to a previously forecast rise of 3.2 and topping the 3.1 increase during the same period last year.

The consumer is healthy. Unemployment is low. Wages are increasing. Their personal finances are reflective through the fact that they are shopping, Steve Sadove, senior adviser to Mastercard and former Saks CEO and chairman, told Reuters. Heading into the holiday season, many U.S. retailers described their consumers as selective, cautious and conservative, and making needsbased purchases. As a result, many doubled down on cutting prices and offering promotions, Bernstein analysts said earlier this month.

Walmart, for example, said it would continue to bring down prices through rollbacks, while rival Target said it would increase its promotional intensity as shoppers were not as engaging without promotions. Dollar General said it expects profits to be pressured from increased promotions in the fourth quarter, while Kroger and…