A recent report from Mastercard has revealed that US Holiday retail sales experienced a 3% increase, showcasing a positive trend in consumer spending. The data, gathered from October 11 to December 24, indicates a rise in retail purchases, with online sales in particular showing a remarkable 49% year-on-year growth.
Excluding automotive and gasoline sales, the figures encompass all forms of payment methods. The peak Holiday season months of November and December saw a 2.4% surge in total sales, with online sales soaring by an impressive 47.2%.
Steve Sadove, senior advisor at Mastercard, pointed out the unique circumstances of the 2020 holiday season. He emphasized the notable shift towards e-commerce, as more consumers opted to shop from the comfort of their homes. This transition to online shopping led to e-commerce accounting for nearly 20% of total retail sales during this festive period.
While home furniture and furnishings experienced a substantial growth of 16.2%, the apparel sector struggled with a 19.1% decline in spending. Jewelry sales also saw a decrease of 4.3%, though online sales in this category surged by 44.6%. The luxury segment, excluding jewelry, faced a significant 21.1% drop.
Department stores reported an overall sales decline of 10.2%, with online sales registering a modest 3.3% increase. Key trends observed among retailers included the popular ‘buy online, pick up in-store’ option and the adoption of contactless payment technologies. The report highlighted that US consumers began their holiday shopping earlier than ever before, taking advantage of early promotions.
Although Black Friday experienced a 16.1% decline in sales, the Thanksgiving weekend through Cyber Monday remained crucial for shoppers. December 12 emerged as a noteworthy shopping day, with consumers eager to secure ‘guaranteed by Christmas’ shipping offers. However, last-minute shopping decreased this year compared to previous years.
The influence of the pandemic likely impacted consumer behavior, leading to a higher demand for online shopping and earlier purchases. This shift towards e-commerce and changes in shopping patterns underscore the evolving landscape of holiday retail sales in response to unprecedented circumstances.
For more information on holiday retail trends and insights, visit Mastercard’s official website and National Retail Federation website.
