U.S. Retail Sales Expected to Rise 7.1% Over Holiday Season: Mastercard
The 2021 holiday season has resurfaced for retailers (up 8.5%) as pandemic-induced pent-up demand, excessive savings and supply chain issues have shoppers stocking up on their carts to get gifts. This year, the holidays are expected to be another positive retail season.
This holiday season, U.S. retail sales excluding autos are expected to grow 7.1% year-over-year (YoY), according to Mastercard’s annual holiday forecast. SpendingPulse. Key trends to watch include extended holiday shopping; bargain hunting; in-store experiences attracting shoppers to stores; and avant-garde gifts.
With holiday shopping set to resume earlier this year, some of the season’s retail growth should be accelerated in October as consumers seek out early deals. The traditional holiday season is set from November 1 to December 24. Key promotional days like Black Friday weekend are also set to make a strong comeback with Christmas Eve, which falls on a Saturday, set to be one of the biggest days for retailers and last-minute shoppers.
As inflation impacts consumers’ wallets, bargain hunting should be in full force this holiday season. From deals and discounts to price monitoring and price matching, consumers are looking to get the most for their money and get value for their money. E-commerce is expected to grow despite significant growth last year, up 4.2% YoY and 69.2% YOY (Yo3Y), as the channel remains a convenient way for consumers to check real-time prices, according to the Mastercard SpendingPulse report. said.
From the return of holiday patio doors to new physical collaborations, retailers are aiming to boost the holiday spirit by drawing consumers into stores. In-store retail sales are expected to increase 7.9% year-on-year and 10.4% year-on-year. While e-commerce has seen marked growth in recent years, in-store spending accounted for more than 4/5 of retail sales from January to August 2022.
Plus, after nearly two years of loungewear and athleisure, consumers can add revamped wardrobes to their wishlists as social events and platforms have plenty of clothes to impress. Apparel (4.6% YoY / 25.3% YoY) and Luxury (4.4% YoY / 29.6% YoY) are expected to be hot sectors for gifts from Christmas, sending consumers into the New Year in style.
“This holiday retail season is bound to be a lot more promotional than the last,” said Steve Sadove, Senior Advisor to Mastercard and Former CEO and Chairman of Saks Incorporated. “Easing supply chain issues, coupled with rapidly changing consumer spending trends and excessive order inventories, left retailers in an attractive position ahead of the holidays. Retailers who were able eliminating past merchandise and accurately forecasting inventory needs will be best positioned for growth.”
“This holiday season, consumers may find themselves looking for ways to navigate the inflationary environment — from finding deals to making compromises that allow for extra headroom in their gift-giving budgets,” said Michelle Meyer, US Chief Economist, Mastercard Economics Institute. “New job creation, rising wages and persistent savings should have many consumers ready and able to spend.”
The holiday season builds on the momentum seen this summer, with U.S. non-auto retail sales in August up 11.7% year-on-year and 20.4% from 2019. online in August increased by 8.9% and 100.2%, respectively, compared to the same period. periods.
Fibre2Fashion (KD) News Desk