Retailers’ heavy digital promotional campaigns appear to have paid off, with good e-commerce sales growth levels leading into the Thanksgiving holiday weekend and continuing straight through Cyber Week (December 2-6) and overall retail sales are up 3% (ex. Auto) so far this holiday season – running from November 1-December 6.
According to Mastercard SpendingPulse, which provides insights into overall retail spending trends across all payment types, total retail sales are in line with the 3.1% percent holiday forecast, with the Thanksgiving holiday weekend (Thursday–Sunday) posting a 4.8% year-over-year increase across retail sales, ex auto.
Black Friday saw total retail up 4.9% ex auto compared to last year and Cyber Monday saw total retail gains of 7.2% ex. auto compared to 2018.
Cold weather across the US was one factor that helped online sales post strong results on Black Friday, especially during the traditional morning doorbuster sales. Department Stores outperformed on Black Friday compared to retail overall.
It’s no surprise that the day known for cyber deals was an outsized day for e-commerce. Total retail sales (in-store and ecommerce) on Cyber Monday grew 7.2%, with e-commerce growing at 27.6%. E-commerce on Cyber Monday accounted for 24.4% of all retail sales and significantly more for certain sectors. For instance, for Apparel, e-commerce accounted for 72.2% of all Apparel sales.
Mastercard’s initial trends from Cyber Week shows a continuation of solid sales. Jewellery (+25.2%) and Apparel (+23.3%), in particular, led the way in terms of e-commerce sales growth.
“This year retail spend has been on the rise, influenced by cyber deals which continue to impact holiday spend beyond traditional days such as Black Friday and Cyber Monday,” says Steve Sadove, senior advisor for Mastercard and former CEO and Chairman of Saks Incorporated. “We’ve seen e-commerce grow 14.4% so far this holiday season, with Jewelry and Apparel leading the way respectively during Cyber Week.”