Mastercard SpendingPulse: U.S. Retail Sales* Grew 3.0% This Holiday Season
According to Mastercard SpendingPulse™, holiday retail sales excluding automotive and gasoline increased 3.0% this expanded holiday season, running from October 11 through December 24. Notably, online sales grew 49.0% compared to 2019, the preliminary insights show. Mastercard SpendingPulse measures overall retail spending trends across all payment types, including cash and check.
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“American consumers turned the holiday season on its head, redefining ‘home for the holidays’ in a uniquely 2020 way. They shopped from home for the home, leading to record e-commerce growth”
|
Traditional Holiday Period |
75 Days of Christmas |
Total retail (ex. auto and gas) |
2.4% |
3.0% |
Total retail (ex. auto) |
0.6% |
1.2% |
E-commerce sales |
47.2% |
49.0% |
Source: Mastercard SpendingPulse measures overall retail sales across all payment types, including cash and check. |
“American consumers turned the holiday season on its head, redefining ‘home for the holidays’ in a uniquely 2020 way. They shopped from home for the home, leading to record e-commerce growth,” said Steve Sadove, senior advisor for Mastercard and former CEO and Chairman of Saks Incorporated. “And, consumers shopped earlier than ever before. Across our expanded 75-day holiday shopping season, sales were up 3.0%, a testament to the holiday season and strength of retailers and consumers alike.”
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Key findings from Mastercard SpendingPulse underscore the shift to online spending, with e-commerce accounting for 19.7% of overall retail sales – up from approximately 13.4% in 2019. In addition, consumers continue to spend more time – and money – on their homes.
- Home furniture and furnishings experienced the strongest growth of any sector compared to 2019, up 16.2%, and it grew 31.0% online specifically. In addition, home improvement was up 14.1%, with e-commerce sales up 79.7%.
- Meanwhile, apparel experienced a decline of 19.1% year over year, while electronics and appliances were up 6.0% overall.
- Department stores saw overall sales decline of 10.2% and online sales growth of 3.3%, reinforcing the importance of omnichannel offerings. Buy online, pick up in store as well as technologies like contactless were key for retailers this season.
Mastercard SpendingPulse™: Sector Snapshot |
||
|
Total YOY Retail Sales Growth |
YOY E-Commerce Sales Growth |
Apparel |
-19.1% |
15.7% |
Department Stores |
-10.2% |
3.3% |
Electronics & Appliances |
6.0% |
— |
Furniture & Furnishings |
16.2% |
31.0% |
Grocery |
6.8% |
— |
Home Improvement |
14.1% |
79.7% |
Jewelry |
-4.3% |
44.6% |
Luxury (ex. Jewelry) |
-21.1% |
— |
Source: Mastercard SpendingPulse measures overall retail sales across all payment types, including cash and check. |
This season, U.S. consumers shopped far earlier than in years past, as retailers offered special promotions early and often. In addition, though Black Friday was down (-16.1%*), Thanksgiving weekend through Cyber Monday remained a key time for shoppers, with Black Friday being the top spending day of the 2020 holiday season.
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