Retailers See Mostly Happy Holiday Results

Easter merchandise out on the sales floor.

But how did the recent holiday shopping season shape up for those businesses? According to Mastercard SpendingPulse, U.S. retail sales (excluding automotive) increased 7.6% year-over-year during the holiday season, which they measure as running from Nov. 1 through Dec. 24. “This holiday retail season looked different than years past,” says Steve Sadove, senior advisor,

Mastercard

and former chief executive officer and chairman, Saks Incorporated. “Retailers discounted heavily, but consumers diversified their holiday spending to accommodate rising prices and an appetite for experiences and festive gatherings post-pandemic.” 

Mastercard’s numbers fell right in line with the National Retail Federation’s predictions that 2022 holiday retail sales would grow by 6 to 8%.  

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Mastercard’s preliminary insights found online sales grew 10.6% compared to the same period last year. E-commerce made up 21.6% of total retail sales, up from 20.9% in 2021 and 20.6% in 2020. The channel continues to experience elevated growth as consumers prioritize convenience and availability of discounts. 

In-person spending rose 6.8%, although Mastercard reported department stores only saw an increase of 1% over last year. Clothing was the big winner with a 4.4% increase. Several categories saw loss rather than growth – electronics sales were down 5.3% and jewelry was down 5.4%. And not all retailers had a happy holiday season. According to USA Today, Bed, Bath and Beyond, which has already been talking about filing for bankruptcy, has announced plans to shutter hundreds of stores. Data from Placer.ai found that foot traffic dropped by an average of 3.22% year-over-year for the weeks from Black Friday through the week of Christmas across major retailers, Walmart, Target, Best Buy, Nordstrom, Kohl’s and Macy’s. However, for most retailers, the holidays were happy, as Adobe Analytics reported total season revenue of $2.11 billion.