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This January, US retail sales grew 7.2 per cent year-over-year (YOY), with online sales growing 10.4 per cent, compared to January 2021, as per a new report by Mastercard SpendingPulse. Despite the shadow of Omicron and elevated inflation, consumer spending was buoyed by pent-up savings, wage growth and the continued re-opening of the ‘experience economy’.
The pandemic arrested a decades-long trend of more spending on services as against goods. Since the middle of last year, this tide has begun to shift back to services – or experiences – as consumers resume in-person activities. According to Mastercard SpendingPulse, the beneficiaries included department stores, apparel and luxury, which all saw double-digit growth.
The report said that the e-commerce sales growth showed no signs of stopping, with double-digit increases in January even compared to the strong base in 2021. Compared to pre-pandemic levels, e-commerce sales were up 110.1 per cent, underscoring the sustained and significant nature of the shift to digital.
This January, US retail sales grew 7.2 per cent year-over-year (YOY), with online sales growing 10.4 per cent, compared to January 2021, as per a new report by Mastercard SpendingPulse. Despite the shadow of Omicron and elevated inflation, consumer spending was buoyed by pent-up savings, wage growth and the continued re-opening of the ‘experience economy’.
Apparel sales were up 37.6 per cent in January YOY, the strongest growth rate for January in SpendingPulse history. The apparel sector has experienced positive growth for 11 consecutive months as consumers refresh wardrobes and dress to impress for gatherings and events taking place in 2022. Luxury segment climbed 45.3 per cent YOY, while the sales continued to outperform in January.
“Coming on the heels of the holidays, January typically marks a month of returns and exchanges. However, the strong growth across sectors reflects the optimism and eagerness for the year ahead,” said Steve Sadove, senior advisor for Mastercard and former CEO and chairman of Saks Incorporated. “With nearly all sectors up, we see consumers returning to their shopping habits with a continued emphasis on digital.”
Fibre2Fashion News Desk (RR)
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