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Home Business BANKS

U.S. retail sales saw strong growth in December, capping a robust holiday shopping season

The FINANCIAL by The FINANCIAL
January 10, 2022
in BANKS, Finance
Reading Time: 2 mins read
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Retail sales in December closed out the year on a high note, according to Mastercard SpendingPulse, which measures in-store and online retail sales across all forms of payment. This follows a robust holiday season, where retail sales grew 8.5% excluding auto. 

As we kick-off 2022, there are a number of trends to watch that build on December momentum—including new ways people are shopping and paying and innovative strategies for how retailers are reaching consumers and providing different experiences for them. As detailed in a new Mastercard report, these trends include:

  • Buying with a Purpose: Consumers are looking for retailers that share their values, creating and delivering products in a sustainable and inclusive way. Across the world, 85% of adults say they’re willing to take personal action to combat environmental and sustainability challenges. And 62% say it’s now more important that companies behave in sustainable and eco-friendly way.
  • Commerce “E-volution”: Retailers and brands spent much of the pandemic shifting or expanding their digital channels, which we see reflected in the SpendingPulse figures as online sales continued to experience strong growth in December (+13.5% YOY/ +60.4% YO2Y). In 2022, innovation will be amplified with retailers looking at different platforms and tactics to reach hyper-connected consumers.
  • Experiential Retail: Innovation has been vital as retailers started to think of their digital and physical stores more cohesively than distinctly separate channels. This trend brought us “phygital” innovation in how retailers engage with customers digitally and in person. We expect the ability to make purchases “how I want” will continue, requiring retailers to offer hybrid models, according to a Mastercard consumer impact study.
  • Consumer Privacy Gets Real: The demand for personalized experience must be met by a heightened focus on consumer privacy. Retailers will need to find new ways to understand and engage their digital consumers effectively.
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