US holiday retail sales to grow by 7.4% in 2021: Mastercard

With early holiday shopping slated to begin in October again this year, retail sales for the ‘75 Days of Christmas’, are anticipated to grow by 6.8 per cent excluding automotive and gas, and e-commerce sales to grow by 7.5 per cent compared to the same period last year, as per the report.

While this holiday season will continue to look different – due to geographical, economic, and household differences – there are several overarching trends to watch. With potential supply chain and labour supply issues impacting the season, retailers are expected to offer omnichannel promotions early on – particularly in the heavily gifted Electronics, Apparel and Department Store sectors. Technologies like contactless and buy online, pick up in store will continue to be embraced by consumers and retailers who desire a quick and seamless experience.

Fuelled in part by pent-up savings and government stimulus, consumers have the desire and the means to spend. Over the last six months, the Luxury retail and Jewellery sectors have been experiencing some of the strongest YOY and YO2Y growth; that is anticipated to continue through the holidays. Nothing says holiday cheer like busy malls and bustling Main Streets. While we anticipate that the return to in-store browsing and shopping will continue, e-commerce retail sales are not going anywhere. For the extended holiday season, e-commerce sales are expected to grow 7.5 per cent YOY and 59.3 per cent YO2Y - a record high for the channel.

“This holiday season will be defined by early shopping, bigger price tags and digital experiences. Over the past two years, retailers have learned a lot about what shoppers want and need, bringing us into an exciting new age of retail resilience,” said Steve Sadove, senior advisor for Mastercard and former CEO and chairman of Saks Incorporated. “Retailers have been preparing for this moment and will find innovative ways to deliver on what’s bound to be the biggest holiday shopping season yet.”

The holiday season will be a fitting end to a year marked by strong retail performance. In August, for instance, US retail sales, excluding automotive and gasoline, increased 8.1 per cent year-over-year, and 7.7 per cent compared to August 2019. Online sales in August grew 8.1 per cent and 82 per cent, respectively, compared to the same periods. This momentum was particularly evident in key gifting categories like apparel (75.2 per cent), which have experienced strong year-over-year growth, according to the Mastercard report.

Fibre2Fashion News Desk (KD)