(Reuters) – U.S. retail sales rose 3 percent during this year’s extended holiday shopping season from Oct. 11 to Dec. 24, according to a report by Mastercard Inc. on Saturday, driven by a pandemic-driven shift toward online shopping.
E-commerce sales in the U.S. rose 49 percent in the holiday shopping season this year, according to the Mastercard SpendingPulse report, which highlights the role of the COVID-19 pandemic in transforming shopping habits of customers.
Holiday e-commerce sales accounted for 19.7% of total retail sales this year, according to the data, and it was noted that options such as online shopping and in-store pickup and contactless technologies were keys for retailers.
The holiday shopping season may account for most of the annual sales of certain retailers, but the health crisis meant that several retailers, including Walmart Inc and Target Corp, faced capacity constraints in certain stores, launched their holiday promotions. ahead of time.
E-commerce giant Amazon.com Inc. also pushed back its annual summer promotional event in October, marking a longer-than-ever holiday season for retailers who lost sales for several weeks during closures in earlier this year.
“It was a healthier holiday season than many had anticipated,” Mastercard senior advisor Steve Sadove told Reuters in an interview.
Sadove believes the digital trend will continue to grow in 2021, as smaller retailers will also adopt new technology to offer customers new ways to shop.
People who spend more time at home due to remote learning and work-from-home policies have fueled the demand for home decor and home improvement products, with retail sales furniture and home furniture category which increased by 16.2% according to the report.
Electronics and home appliances also rose 6% during the period, as reduced spending on food, travel and leisure encouraged shoppers to make other purchases.
Clothing and jewelry sales fell overall, but e-commerce sales rose 15.7% and 44.6%, respectively.
The SpendingPulse report tracks spending by combining sales activity in the Mastercard payment network with estimates of cash and other forms of payment, but excludes car sales.
Reports of Praveen Paramasivam, Nivedita Balu and Anirudh Saligrama in Bengaluru; Edited by Pravin Char and Alexandra Hudson