Retail sales in the US increased a modest 3 percent during a longer holiday season this year, as homebound shoppers spent more on furnishing and food, but less on clothing and jewelry, according to figures released on Saturday by a firm that tracks all forms of payments.
The increase fell short of predictions from the National Retail Federation, the US’ largest retail trade group, which had expected sales to rise 3.6 to 5.2 percent this year compared with last year.
As expected, a surge in online shopping fueled much of spending. Online sales rose a record 49 percent year-on-year from Oct. 11 to Thursday, according to the Mastercard SpendingPulse figures, which exclude services, automotive and gasoline sales.
Photo: AFP
The holiday shopping season was considered longer this year as retailers offered promotions sooner and encouraged customers to get a jump-start to avoid delivery delays.
During the traditional holiday period from Nov. 1 to Thursday, retail sales rose 2.4 percent annually, according to Mastercard’s data.
Steve Sadove, senior adviser for Mastercard Inc and former chief executive officer and chairman of Saks Inc, said the surge in online spending and the early shopping was “a testament to the holiday season and strength of retailers and consumers alike.”
Buying trends benefited e-commerce giant Amazon.com Inc and big-box stores like Target Corp and Walmart Inc, which already had robust e-commerce operations and were allowed to stay open during the COVID-19 pandemic, attracting shoppers who wanted to avoid visiting multiple stores.
However, the pandemic has been detrimental for smaller shops, clothing brands and department stores.
Holiday department store sales fell 10.2 percent year-on-year, according to Mastercard. Spending on apparel plunged 19.1 percent and jewelry sales fell 2.3 percent.
Shoppers instead invested in their homes. Furniture and furnishing sales increased 16.2 percent, while spending on home improvement rose 14.1 percent.
Consumers also favored electronics and appliances, a category where sales rose 6 percent.
Clothing stores and specialty retailers offered big discounts, and promoted curbside pickup in the hopes of rescuing the holiday season and surviving a difficult year.
There was some payoff, as online clothing sales rose 15.7 percent, Mastercard said.
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