**Mastercard Study Predicts Moderate Growth in US Retail Sales for the Holiday Season**

The upcoming holiday season promises a 3.2% increase in US retail sales, according to a recent forecast from Mastercard. Given the shorter shopping period, retailers are increasingly relying on discounts and promotions to attract price-conscious customers. In comparison, retail sales during the same period last year grew by 3.1%. Mastercard SpendingPulse tracks both in-store and online sales, excluding automotive sales. This year, customers are expected to be more selective with their spending, prompting major retail players like Walmart, Target, Amazon, Shein, and Temu to adopt aggressive discount strategies. The report indicates that while the decline in inflation plays a role, discounts and special promotions are crucial for the season's success. A shorter shopping window—only 27 days between Thanksgiving and Christmas—may also push retailers to start their promotions earlier. Additionally, a Deloitte forecast shows that the growth in US holiday sales could be the lowest in the past six years. Online sales could increase by 7.1% compared to last year, as per the Mastercard report. Specifically, the sale of electronic items such as TVs and laptops could rise by 6.7% thanks to lower financing costs and more favorable prices. The replacement of older devices bought during the pandemic also plays a role. Earlier this week, electronics retailer Best Buy announced that it would start its holiday promotions for members at the end of the month. Looking ahead to the upcoming holiday season, the Federal Reserve initiated a series of expected interest rate cuts and reduced the benchmark rate by a notable 50 basis points. This move is likely to help alleviate some of the financial pressures consumers have felt over the past two and a half years due to high inflation. Consumer spending remains resilient, evidenced by the unexpected rise in US retail sales in August driven by strong online purchases. The labor market remains stable and supports consumption and general economic development through steadily increasing wages.