“US retail sales rose for a 3rd month running in December, which will strengthen the view that the economy maintained a moderate growth pace at the end of 2020″ — Paul Ebeling
Mastercard (NYSE:MA) reported Saturday morning that US retail sales rose 3.0% during this year’s virus chaos Holiday shopping season from 11 October to 24 December. The rise was powered by a shift toward online shopping.
US ecommerce sales jumped 49% in this yr’s Holiday shopping season, according to Mastercard SpendingPulse report, underscoring the virus chaos’ role in changing consumers’ shopping habits.
The Holiday shopping season can account for the majority of certain retailers’ annual sales, but the emergency health issue meant several retailers including Walmart Inc (NYSE:WMT) and Target Corp (NYSE:TGT) , faced with capacity restrictions in certain stores, rolled out their Holiday promotions early.
Holiday e-Commerce sales made up 19.7% of total retail sales this yr, according to Mastercard’s data.
The National Retail Federation (NRF) estimates that the number of people who shopped only online rose 44% during the Thanksgiving Holiday weekend.
People spending more time at home due to extended work-from-home, remote learning policies and draconian stay at home orders have fueled demand for home décor and home-improvement products, with retail sales in the home furniture and furnishings category rising 16.2% according to the report.
Electronics and appliances also rose 6% during the frame, the report said, as a reduction in spending on dining out, travel and leisure encouraged consumers to make other purchases.
The SpendingPulse report tracks spending by combining sales activity in Mastercard’s payments network with estimates of cash and other payment forms ex automobile sales.
On average, people return 25% of items they buy online, compared with only 8% of what they buy in stores, according to Forrester Research.
Happy Returns a Santa Monica, California based startup works with about 150 online retailers has increased its number of drop-off locations to 2,600, from more than 700 last yr. That includes 2,000 FedEx (NYSE:FDX) locations.
Have a healthy Holiday weekend, Keep the Faith!