Mastercard SpendingPulse: U.S. retail rises to 8.5% this holiday season

News Desk - 27/12/2021

Consumers loaded their carts with gifts and gadgets, bringing stores back to life. Holiday retail sales excluding automotive grew 8.5 percent year over year this holiday season, according to Mastercard SpendingPulse, which ran from November 1 to December 24. The first findings reveal that internet sales increased by 11.0 percent over the same period last year. SpendingPulse by Mastercard tracks in-store and online retail sales across all payment methods.

“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,” said Steve Sadove, senior advisor for Mastercard and former CEO and Chairman of Saks Incorporated.

He added, “Consumers splurged throughout the season, with apparel and department stores experiencing strong growth as shoppers sought to put their best-dressed foot forward.”

The holiday shopper is strong across channels, according to Mastercard SpendingPulse, with consumers returning to retail (+8.1 percent YOY) and e-commerce continuing to grow, up 11.0 percent from 2020. The following are some more noteworthy findings:

Consumers shopped early: Consumers in the United States shopped sooner than in previous years, as shops provided special bargains early in the season and then later in the season as buyers rushed to grab “guaranteed by Christmas” delivery promises, continuing a major trend that began in 2020. Total retail sales were up +8.6% YOY for the 75 days between October 11 and December 24 in Mastercard’s extended holiday season.
Thanksgiving weekend remained key: Black Friday was once again the most popular shopping day of the 2021 holiday season. Thanksgiving weekend, which runs from Friday, November 26 to Sunday, November 28, had a 14.1 percent year-over-year increase in retail sales in the United States. In-store sales increased by +16.5 percent year over year, while e-commerce sales increased by +4.9 percent year over year.
Smaller boxes had a big impact: The Jewelry industry witnessed some of the strongest YOY and YO2Y increases, whether customers were shopping for themselves or for loved ones.
E-commerce sales snowballed: E-commerce accounted up 20.9 percent of overall retail sales this Christmas season, up from 20.6 percent in 2020 and 14.6 percent in 2019. Consumers like the convenience of holiday browsing and shopping from the comfort of their own homes, thus the channel continues to develop.