US holiday retail sales rise as online shopping booms: Mastercard

Bengaluru

US RETAIL sales rose 3 per cent during this year's expanded holiday shopping season from Oct 11 to Dec 24, a report by Mastercard said on Saturday, powered by a pandemic-driven shift towards online shopping.

US e-commerce sales jumped 49 per cent in this year's holiday shopping season, said the Mastercard SpendingPulse report, underscoring the Covid-19 pandemic's role in transforming customers' shopping habits.

Holiday e-commerce sales made up 19.7 per cent of total retail sales this year, the data showed, noting that options such as buy online and pick-up-in-store, contactless technologies were key for retailers.

The holiday shopping season can account for the majority of certain retailers' annual sales, but the health crisis meant several retailers including Walmart and Target, faced with capacity constraints in certain stores, rolled out their holiday promotions early.

E-commerce giant Amazon also pushed back its annual summer promotional event to October, marking a longer holiday season for retailers who missed out on sales for several weeks during the lockdowns earlier this year.

"This was a healthier holiday season than many had forecast," senior adviser for Mastercard Steve Sadove told Reuters in an interview.

He believes the digital trend will continue to grow in 2021, with smaller retailers also embracing new technology to offer customers new ways to shop.

People spending longer at home due to extended work-from-home and remote learning policies have fuelled demand for home decor and home-improvement products, with retail sales in the home furniture and furnishings category jumping 16.2 per cent, said the report.

Electronics and appliances also rose 6 per cent during the period, as a reduction in spending on dining out, travel and leisure encouraged shoppers to make other purchases.

Sales of apparel and jewellery slumped overall, but e-commerce sales rose 15.7 per cent and 44.6 per cent.

The SpendingPulse report tracks spending by combining sales activity in Mastercard's payments network with estimates of cash and other payment forms but excludes car sales. REUTERS