According to a report by Mastercard Inc., US retail sales experienced a significant growth of 8.5% during the holiday shopping season from November 1 to December 24. This growth was largely driven by the surge in e-commerce sales, which saw an impressive 11% increase compared to the previous year.
The ongoing pandemic has had a profound impact on consumer shopping habits, with customers increasingly turning to online platforms to make their purchases. Concerns over supply chain issues and the rising number of Covid-19 cases prompted many shoppers to rush to stores and secure their gifts ahead of the usual retail rush. This shift in behavior reflects the evolving needs and preferences of consumers in response to the pandemic.
Steve Sadove, Senior Advisor for Mastercard, acknowledged the influence of supply chain and labor supply issues on driving consumers to both online and physical stores. The convenience and ease of online shopping, along with the necessity of avoiding crowded stores, has prompted customers to embrace e-commerce and make purchases from the comfort of their own homes.
The data from the report also revealed that holiday e-commerce sales accounted for 20.9% of total retail sales this year, confirming the sustained growth and popularity of online shopping among consumers. Additionally, certain product segments experienced notable growth during the holiday season. Jewelry sales saw a significant surge of 32%, while sales of electronics climbed by 16.2% compared to the previous year.
It is important to note that the Mastercard SpendingPulse report tracks spending within Mastercard’s payments network and provides estimations of cash and other payment forms. However, it does not include automobile sales and primarily focuses on retail sales and e-commerce.
Overall, the 2021 holiday season demonstrated a strong performance in the US retail sector, with e-commerce playing a vital role in driving sales growth. The convenience and safety offered by online shopping, coupled with consumers’ willingness to embrace new trends, have contributed to the positive outcomes observed during this period. As the retail landscape continues to evolve, businesses must adapt their strategies and seize the opportunities presented by e-commerce to meet the changing demands of customers.
Here are two useful links related to the article:
1. Mastercard SpendingPulse Report
2. Study: COVID drives online holiday sales up 32% YoY versus 2019
