US Retail Sales Jump in the Run Up to Christmas

Despite supply chain issues and Covid-19 concerrns, US retail sales were strong in the weeks leading up to Christmas. According to Mastercard, 2021 US holiday retail sales, excluding automotive, increased 8.5% year-over-year for the period Nov. 1 to Dec. 24, 2021. Online sales grew 11% compared to the same period last year. The Mastercard SpendingPulse measures in-store and online  retail  sales across all forms of payment and defines the holiday season as November 1 through December 24.

“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,” said Steve Sadove, senior adviser for Mastercard and former chief executive officer and chairman of Saks Inc. “Consumers splurged throughout the season, with apparel and department stores experiencing strong growth as shoppers sought to put their best-dressed foot forward.”

Additional key findings from Mastercard SpendingPulse include:

• Consumers shopped early: Continuing a key trend from 2020, US consumers shopped earlier than in years past, as retailers offered special promotions early and then again later in the season as shoppers raced to secure “guaranteed by Christmas” shipping offers. Looking at Mastercard’s expanded holiday season, total retail sales were up 8.6% YOY for the 75 days between October 11 and December 24.
• Thanksgiving weekend remained key: Black Friday marked the top spending day of the 2021 holiday season yet again. For the Thanksgiving weekend running Friday, November 26 through Sunday, November 28, shoppers drove US retail sales up 14.1% YOY. In-store sales also rebounded, increasing 16.5% YOY while e-commerce sales experienced sustained growth, up +4.9% YOY.
• Smaller boxes had a big impact: Whether consumers were shopping for themselves or for loved ones, the jewelry sector experienced some of the strongest YOY and YO2Y growth.
• E-commerce sales snowballed: This holiday season, e-commerce made up 20.9% of total retail sales, up from 20.6% in 2020 and 14.6% in 2019. The channel continues to experience elevated growth as consumers enjoy the ease of holiday browsing and buying in the comfort of their own homes.

Other groups have also weighed in on Holiday 2021. The National Retail Federation predicts holiday retail sales rose 11.5% to $859 billion. Adobe, the software company, estimates that in the week after Cyber Monday (November 30 to December 6), consumers spent $26.3 billion online. That total is down 7.1% from 2020, when the pandemic disrupted holiday sales; but up more than 40% from 2019. From December 7 to December 13, consumers spent $25.3 billion online; that's down 2.4% from a year ago, but up 36.9% from 2019.