Retail Holiday Sales in the US Soar by 8.5% 

Consumers have changed their spending habits in the wake of the pandemic, putting more of their shopping dollars towards e-commerce spending.

Retail-Holiday-Sales-in-the-US-Soar-by-8.5% 
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According to a Mastercard Inc SpendingPulse report, retail sales in the U.S. during this holiday season rose by 8.5 percent. The 2021 holiday shopping season ran from November 1 to December 24. The bulk of the sales was driven by online shopping, which jumped by 11 percent this season.

The SpendingPulse tracks spending through Mastercard’s retail sales activity, along with other forms of payments. The report includes food service vendors and retailers but excludes vehicle sales, lodging, and air travel expenses.

The report reinforced the idea that shopping habits have changed in the wake of the pandemic as more consumers shopped online. E-commerce sales comprised 20.9 percent of retail sales totals this holiday season, compared to last year’s 20.6 percent and 2019’s 14.6 percent. It seems many consumers enjoy shopping in the comfort of home.

But, shoppers also flocked to brick and mortar stores, thanks to supply chain concerns. Consumers shopped earlier to secure their holiday gift-giving and take advantage of early promotions advertised by retailers. Physical store sales were also higher, at 8.1 percent compared to last year.

Steve Sadove, Mastercard senior advisor, said: “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. Consumers splurged throughout the season, with apparel and department stores experiencing strong growth as shoppers sought to put their best-dressed foot forward.”

Apparel, electronics, and jewelry sales saw massive growths over last year’s sales, at 47.3 percent, 16.2 percent, and 32 percent, respectively.

Previously, the National Retail Federation had forecast an increase of retail holiday sales of 10.5 percent.

 

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