US Retail Sales Grew 8.5% This Holiday Season
Mastercard SpendingPulse said supply-chain worries drove shoppers online and in stores “in droves.”
Consumers splurged throughout the season, making it a “resurgent season” for retailers as shoppers stocked their carts with gifts and gadgets, according to Mastercard SpendingPulse for holiday retail sales.
Excluding automotive, sales increased 8.5% year-over-year this holiday season, running from Nov. 1 through Dec. 24.
Consumers shopping in stores rose 8.1% year over year, while online sales grew 11% compared to the same period last year, the preliminary insights show.
This holiday season, e-commerce made up 20.9% of total retail sales, up from 20.6% in 2020 and 14.6% in 2019. Mastercard SpendingPulse measures in-store and online retail sales across all forms of payment.
Apparel and department stores experienced strong growth as shoppers sought to put their best dressed foot forward.
Shopping Early
Continuing a key trend from 2020, US consumers shopped earlier than in years past, as retailers offered special promotions early and then again later in the season as shoppers raced to secure “guaranteed by Christmas” shipping offers.
“Shoppers were eager to secure their gifts ahead of the retail rush, with conversations surrounding supply chain and labor supply issues sending consumers online and to stores in droves,” Steve Sadove, senior advisor for Mastercard and former CEO and Chairman of Saks Incorporated, said in prepared remarks.
Cautious Optimism Moving Forward
The early shopping was captured in the Commerce Department’s monthly retail sales in October, while further reports from the agency showed some slippage. Even in December, traffic had decelerated, said Oliver Chen, a retail analyst for Cowen, on CNBC’s “Squawk on the Street.”
Chen said he still has tempered expectations for the industry’s performance this holiday season and beyond, adding that inflation and the Covid omicron variant are weighing on consumers’ minds at the same time that supply chain challenges are posing business pressure. In the event that shoppers’ appetites wane or goods arrive at the wrong time, it would force retailers to increase markdowns.