Mastercard SpendingPulse: U.S. Retail Sales Saw Strong Growth in December, Capping a Robust Holiday Shopping Season

Rhea-AI Summary

In December 2021, U.S. retail sales, measured by Mastercard SpendingPulse, showed a 6.9% increase compared to December 2020, with e-commerce growing by 13.5%. The robust holiday season demonstrated strong consumer demand, with total retail sales up 8.5% excluding auto. Key sectors like apparel and restaurants saw remarkable growth, with apparel sales climbing 46.3%. Going into 2022, trends highlight the importance of sustainability and innovative shopping methods, with retailers adapting to consumer preferences for personalized experiences.

Positive

• Total retail sales grew by 6.9% in December 2021 compared to December 2020.
• E-commerce sales surged by 13.5% year-over-year.
• Apparel sales increased by 46.3%, indicating strong consumer interest.
• Restaurants experienced a growth of 51.9% in sales, reflecting recovery in the dining sector.

Negative

• None.

Retail trends continue to reflect evolving consumer preferences and demand for personalized experiences

PURCHASE, N.Y.--(BUSINESS WIRE)-- Retail sales in December closed out the year on a high note, according to Mastercard SpendingPulse^TM, which measures in-store and online retail sales across all forms of payment. This follows a robust holiday season, where retail sales grew 8.5% excluding auto.

Mastercard SpendingPulse U.S. Snapshot – December 2021
	Sales Growth December 2021 vs. 2020	Sales Growth December 2021 vs. 2019
Total Retail Sales (ex. auto & gas)	+6.9%	+8.1%
Total Retail Sales (ex. auto)	+10.3%	+11.3%
E-commerce	+13.5%	+60.4%
By Sector
Apparel	+46.3%	+22.6%
Department Stores	+19.1%	+15.3%
Electronics & Appliances	+16.0%	+17.6%
Grocery	+8.3%	+16.9%
Jewelry	+31.0%	+27.0%
Luxury (ex. Jewelry)	+46.8%	+20.7%
Restaurants	+51.9%	+21.1%
Source: Mastercard SpendingPulse, which measures overall retail sales across all payment types, including cash and check.

As we kick-off 2022, there are a number of trends to watch that build on December momentum—including new ways people are shopping and paying and innovative strategies for how retailers are reaching consumers and providing different experiences for them. As detailed in a new Mastercard report, these trends include:

• Buying with a Purpose: Consumers are looking for retailers that share their values, creating and delivering products in a sustainable and inclusive way. Across the world, 85% of adults say they’re willing to take personal action to combat environmental and sustainability challenges. And 62% say it’s now more important that companies behave in sustainable and eco-friendly way.
• Commerce “E-volution”: Retailers and brands spent much of the pandemic shifting or expanding their digital channels, which we see reflected in the SpendingPulse figures, as online sales continued to experience strong growth in December (+13.5% YOY, +60.4% YO2Y). In 2022, innovation will be amplified with retailers looking at different platforms and tactics to reach hyper-connected consumers.
• Experiential Retail: Innovation has been vital as retailers started to think of their digital and physical stores more cohesively than distinctly separate channels. This trend brought us “phygital” innovation in how retailers engage with customers digitally and in person. We expect the ability to make purchases “how I want” will continue, requiring retailers to offer hybrid models, according to a Mastercard consumer impact study.
• Consumer Privacy Gets Real: The demand for personalized experience must be met by a heightened focus on consumer privacy. Retailers will need to find new ways to understand and engage their digital consumers effectively.

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. Holiday spending insights are preliminary.

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/20220106005899/en/

Alexandria Brown

914-260-1020

Alexandria.brown@mastercard.com

Source: Mastercard Investor Relations

FAQ

What were the U.S. retail sales growth figures for December 2021 compared to December 2020?

U.S. retail sales grew by 6.9% in December 2021 compared to December 2020.

How much did e-commerce sales grow in December 2021?

E-commerce sales grew by 13.5% in December 2021 year-over-year.

What sectors saw strong sales growth in December 2021?

Apparel sales grew by 46.3%, and restaurants saw a 51.9% increase.

What is the outlook for retail trends in 2022?

Retail trends in 2022 focus on sustainability, innovative shopping methods, and personalized consumer experiences.

How is Mastercard SpendingPulse data significant for understanding retail sales?

Mastercard SpendingPulse provides insights into national retail sales across all payment types.