- Title: Record online sales give U.S. holiday shopping season a boost - report
- Date: 26th December 2019
- Summary: MIAMI, FLORIDA, UNITED STATES (DECEMBER 26, 2019) (REUTERS VIA SKYPE) (SOUNDBITE) (English) MASTERCARD, SENIOR ADVISOR, STEVE SADOVE, SAYING: "During the holiday season, the consumer was very healthy. If we look at all sales ex-auto, it says that the consumer increased their purchases by 3.4 percent. If we take ex-auto and gas, it says that the data... that the consumer increased their purchases by 4 percent. This is on top of a 5.2 percent purchase rate last year. So overall, the consumer is extremely healthy. The Internet sales performed exceptionally well, up 18.8 percent versus a year ago, and represented 14.6 percent of all consumer purchases. So, the consumer was healthy, Internet growing very rapidly. And it's an indicator, given that two-thirds of the U.S. consumer economy is the consumer, that the consumer is driving, continues to drive the U.S. economy."
- Embargoed: 9th January 2020 19:19
- Keywords: Gap Mastercard SpendingPulse Old Navy U.S. Presidnet Donald Trump brick and mortar e-commerce holiday retail sales holiday season online sales retail sales shopping
- Location: NEW YORK, NEW YORK, + MIAMI, FLORIDA, UNITED STATES / INTERNET
- City: NEW YORK, NEW YORK, + MIAMI, FLORIDA, UNITED STATES / INTERNET
- Country: USA
- Topics: Economic Events
- Reuters ID: LVA002BBM4DQL
- Aspect Ratio: 16:9
- Story Text: U.S. shoppers spent more online during this year's holiday shopping season, a report by Mastercard showed on Wednesday (December 26), with e-commerce sales hitting a record high.
The holiday shopping season is a crucial period for retailers and can account for up to 40% of annual sales. But this year, Thanksgiving, which traditionally starts the U.S. holiday shopping period, was on Nov. 28, nearly a week later than last year's Nov. 22, leaving retailers with six fewer days to drive sales between Thanksgiving and Christmas.
E-commerce sales this year made up 14.6% of total retail and rose 18.8% from the 2018 period, according to Mastercard's data tracking retail sales from Nov. 1 through Christmas Eve.
Overall holiday retail sales, excluding autos, rose 3.4%.
Retailers have invested heavily to provide same-day delivery, lockers for store pick-up and improve their online presence as they battle against retail giant Amazon for market share.
U.S. President Donald Trump, whose support in the polls has been buoyed by strong economic data despite his impeachment by the House of Representatives, heralded the news in a tweet in all capital letters.
"2019 HOLIDAY RETAIL SALES WERE UP 3.4% FROM LAST YEAR, THE BIGGEST NUMBER IN U.S. HISTORY. CONGRATULATIONS AMERICA!," Trump tweeted.
However, Mastercard spokesman William Tsang, citing 2018's 5.1% growth in total sales, said this year's holiday sales growth was not the biggest ever.
Despite slowing global growth, U.S. consumer spending is benefiting from wage growth and a strong labor market, retail consultants and analysts say.
The holiday season was challenging for retailers after Amazon expanded its free return policy to include products that were not previously eligible, giving consumers until January to return even small purchases bought on the website.
The National Retail Federation had forecast U.S. holiday retail sales over the two months to increase between 3.8% and 4.2%. That compares with an average annual increase of 3.7% over the past five years.
The SpendingPulse report tracks spending by combining sales activity in Mastercard's payments network with estimates of cash and other payment forms but excludes automobile sales.
(Production: Aleksandra Michalska & Hussein Waaile)
- Copyright Holder: REUTERS
- Usage Terms/Restrictions: None