Holiday retail sales were stronger this year than in 2023, according to data from a Mastercard SpendingPulse report, reported Reuters. The increase in sales was mostly driven by online shopping and last-minute discounts or promotions on items.

According to the Mastercard report, online spending during the holiday shopping period from November 1 to December 24 grew by 6.7% over last year, compared to a 2.9% increase for in-store sales. This contributed to a total spending increase of 3.8% over 2023, the news outlet reported.

“Steve Sadove, senior adviser to Mastercard and former Saks CEO and chairman, told Reuters that spending rose even when higher prices due to inflation were factored in. He noted that the last five days of the holiday season accounted for 10% of all holiday spending, showing ‘a lot of strength in the end.’”

Facing inflation and assumptions that consumers might spend less this year, retailers “doubled down on cutting prices and offering promotions, Bernstein analysts said earlier this month,” wrote Reuters.

“Walmart 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 engaged without promotions. Dollar General said it expects profits to be pressured from increased promotions in the fourth quarter, while Kroger and Five Below also said they had to reduce prices to be competitive.”

Earlier this week, NACS Daily reported that the Associated Press announced that Walmart “won” the 2024 value wars. The retailer “typically shines during tough times as shoppers turn to the discounter for groceries, which account for 60% of Walmart’s total business. And just like during the 2008 Great Recession, Walmart saw households with incomes of $100,000 or above making up more of its clientele,” wrote AP.