Holiday Sales Tick Up As Shoppers Invest In Their Homes
NEW YORK: Retail sales increased a modest 3% 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 Saturday by a firm that tracks all forms of payments.
The increase fell short of predictions from the National Retail Federation, the nation’s largest retail trade group, which had expected sales to rise between 3.6% and 5.2% this year compared to 2019.
As expected, a surge in online shopping fueled much of spending. Online sales rose a record 49% year-over-year between Oct. 11 and Dec. 24, according to the Mastercard SpendingPulse figures, which exclude services, automotive and gasoline sales.
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, between Nov. 1 and Dec. 24, retail sales rose 2.4% year-over-year, according to Mastercard’s data.
Steve Sadove, senior advisor for Mastercard and former CEO and Chairman of Saks Incorporated, said the surge in online spending and the early shopping was “a testament to the holiday season and strength of retailers and consumers alike.
