Are low gas prices spurring consumers to spend more this holiday season?
A new study from MasterCard SpendingPulse has revealed that the retail industry fared well this holiday season, and the season hasn’t even come to a complete halt yet, as many consumers reported intentions to continue shopping after Christmas.
According to a report from The Washington Post, the MasterCard study showed that, between Black Friday and Christmas Eve, retail sales were up 7.9% compared to last year.
Just as was forecasted, online shopping was a strong area this year, and e-commerce sales were up 20%, which provided crucial momentum this holiday season, as the area posted greater sales than brick-and-mortar stores. The influence that e-commerce would have was made apparent during the season’s kickoff on Thanksgiving weekend, where brick-and-mortar stores saw a 10.4% dip in sales and online sales hit record levels.
The Washington Post reported that Amazon was a key beneficiary of the surge in online shopping this holiday season, ringing up nearly 36% of total online sales on Cyber Monday. Additionally, a poll conducted by CNBC found that 49% of shoppers say they “always” or “most of the time” browse Amazon when they shop online.
Another trend that the MasterCard study revealed was that furniture was highly sought after this holiday season, presumably by Millennials forming their own homes.
Retailers also found encouragement as apparel sales saw growth during the season. As warm weather lingered into the holiday rush, apparel sales had been soft at many retailers, as consumers avoided purchasing boots, coats and other cold-weather gear. However data from the study suggests that consumers ended up seeking clothing after all, as women’s apparel sales saw robust growth. Meanwhile, men’s clothing sales declined, dragging down the growth rate for the category overall.