Mastercard SpendingPulse Anticipates 15%* U.S. Retail Sales Growth on Black Friday

Rhea-AI Summary

Mastercard SpendingPulse anticipates a strong +15% growth in U.S. retail sales excluding automotive on Black Friday 2022. This forecast comes as in-store shopping sees a resurgence, with predictions of an 18% increase year-over-year. Department stores are expected to rise nearly 25%, while dining out will grow by 35%. Travel sectors will experience significant double-digit growth, with airlines at +39% and lodging at +32%. October retail sales already showed a 9.5% increase YOY, indicating a robust consumer spending trend.

Positive

• Retail sales expected to grow +15% on Black Friday compared to last year.
• In-store sales predicted to rise +18% year-over-year.
• Department store sales anticipated to increase nearly +25% year-over-year.
• Dining out expected to see +35% year-over-year growth.
• Airlines and lodging projected to experience significant growth of +39% and +32%, respectively.

Negative

• None.

PURCHASE, N.Y.--(BUSINESS WIRE)-- According to Mastercard SpendingPulse^TM, U.S. retail sales excluding automotive is expected to grow +15% on Black Friday compared to last year. Mastercard SpendingPulse measures in-store and online retail sales across all forms of payment and is not adjusted for inflation.

With many big-box retailers, department stores and outlet malls closed again on Thanksgiving Day, consumers will be gearing up for the main event – a Black Friday shopping blitz. Key trends to watch this Black Friday, include:

• In-store shopping prevails: Building on last year’s in-store momentum and the post-pandemic return of doorbusters, window displays and brick-and-mortar collaborations are continuing to drive shoppers back into stores with in-store retail sales anticipated to be up +18% year-over-year.
• Department store deals: Department stores are making a comeback with deals and discounts to entice consumers. This Black Friday, Department Store sales are anticipated to be up nearly +25% year-over-year as consumers shop online and in-store at these one-stop shops for all the gifts on their holiday shopping list.
• Dining out for the holidays: Restaurants are expected to experience +35% year-over-year growth on Black Friday as consumers prioritize experiences and dining out with friends and family.
• Tis the season for travel: Travel companies are also getting in on the promotional holiday. Separate from total retail sales, Airlines (+39% YOY, +14% YO3Y) and Lodging (+32% YOY, +40% YO3Y) are expected to experience double-digit growth on Black Friday as consumers plan their next getaway.

“Expect Black Friday shopping to be in full force across channels this year,” said Steve Sadove, senior advisor for Mastercard and former CEO and Chairman of Saks Incorporated. “While retailers have already been heavily discounting this season, consumers and retailers are likely holding out for some special offers to land on the biggest promotional day of the year.”

Mastercard SpendingPulse October Insights:

As anticipated, early holiday promotions drove consumers online and into stores. According to Mastercard SpendingPulse, October U.S. retail sales excluding automotive increased 9.5% year over year and 23.6% compared to October 2019. E-commerce sales in October grew 12.7% YOY and 96.0% YO3Y. Experiential sectors including Restaurants, Airlines and Lodging all saw double-digit growth compared to both 2021 and 2019.

“In October we saw the strength in the labor market continue to support consumer purchasing power,” said Michelle Meyer, U.S. Chief Economist, Mastercard Economics Institute. “Coupled with heavy online promotions, consumers got a head start on their holiday shopping, fueling another strong month of retail sales.”

Mastercard SpendingPulse October Retail Snapshot
	2022 vs. 2021	2022 vs. 2019
Total Retail (ex. Auto)	9.5%	23.6%
Total Retail (ex. Auto & Gas)	8.4%	22.4%
E-commerce sales	12.7%	96.0%
In-store sales	8.9%	14.8%
Retail Sectors
Apparel	5.7%	17.7%
Department Stores	1.1%	7.8%
Electronics	4.5%	29.3%
Fuel & Convenience	20.1%	35.0%
Furniture & Furnishings	-1.1%	22.1%
Grocery	7.2%	25.3%
Hardware	3.4%	15.3%
Jewelry	-3.8%	34.1%
Luxury (ex. Jewelry)	-8.7%	7.1%
Restaurants	16.6%	43.8%
Mastercard SpendingPulse October Travel Snapshot
	2022 vs. 2021	2022 vs. 2019
Airlines	17.2%	7.3%
Lodging	36.9%	56.6%

*Excluding Automotive

About Mastercard SpendingPulse

Mastercard SpendingPulse reports on national retail sales across all payment types in select markets around the world. The findings are based on aggregate sales activity in the Mastercard payments network, coupled with survey-based estimates for certain other payment forms, such as cash and check. Mastercard SpendingPulse defines “U.S. retail sales” as sales at retailers and food services merchants of all sizes. Sales activity within the services sector (for example, travel services such as airlines and lodging) are not included. For more information about Mastercard SpendingPulse or to subscribe, visit product page or the AWS Data Exchange.

About Mastercard (NYSE: MA)

Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. Our decency quotient, or DQ, drives our culture and everything we do inside and outside of our company. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221114006147/en/

Alexandria Pierroz

Alexandria.Pierroz@mastercard.com

914-260-1020

Source: Mastercard Investor Relations

FAQ

What is the anticipated growth of U.S. retail sales excluding automotive for Black Friday 2022?

Mastercard SpendingPulse predicts a +15% growth in U.S. retail sales excluding automotive on Black Friday 2022.

How much are in-store sales expected to increase this Black Friday?

In-store sales are expected to increase by +18% year-over-year this Black Friday.

What growth is projected for department stores on Black Friday 2022?

Department store sales are anticipated to increase nearly +25% year-over-year on Black Friday 2022.

What are the expected year-over-year growth rates for airlines and lodging during Black Friday?

Airlines are projected to grow by +39% and lodging by +32% year-over-year during Black Friday.