Mastercard SpendingPulse: U.S. Retail Sales Grow 10.9 percent In July

Source:China Sport ShowRelease time:18-Aug-2021Clicks:

Article From：SGB Media

Retail sales in the U.S. grew for the 11th consecutive month in July, according to Mastercard SpendingPulse*, which measures in-store and online retail sales across all forms of payment. With more cash in hand, fueled in part by the Child Tax Credit and pent-up savings, consumers drove U.S. retail spending growth, excluding auto and gasoline, to 10.9 percent compared to July 2020. This is nearly quadruple the average growth in the month of July.

At a national level, back-to-school spending is underway, impacting several sectors as anticipated in Mastercard’s forecast. Key retail trends from its July report include:

The first of six monthly Child Tax Credit payments provided parents with an infusion of cash in the peak back-to-school shopping season with Apparel (+80 percent YOY) and Department Store (+44.8 percent YOY) sectors seeing an uptick in sales for the month. This was concentrated in the days immediately following the first Child Tax Credit distribution on July 15.

Brick and mortar browsing has made its return, with in-stores sales making up 81.9 percent of total retail sales (ex-auto) for the month. In-store sales were up +15.5 percent YOY in July and weekends experienced positive spikes in spending as a result of in-store shopping.

According to data released by the U.S. Census Bureau, new home sales fell to an 18-month low; however, consumers continue to spend on home improvements as the Furniture & Furnishings sector grew on a YOY (+3.2 percent) and YO2Y (+26.8 percent) basis.

“While e-commerce continues to play an increasingly significant role for retail, nothing replaces the in-store experience,” said Steve Sadove, senior advisor for Mastercard and former CEO and Chairman of Saks Inc. “July numbers reflect a return to the store. Consumers are shopping, spending and splurging across channels.”

Mastercard’s chief economist and head of Mastercard’s Economics Institute, Bricklin Dwyer, said, “Back-to-school shopping is back. Combined with greater savings and higher demand, the Child Tax Credit has provided a boost for families and is putting more money into retailers’ pockets.”

*Mastercard SpendingPulse’s findings are based on aggregate sales activity in the Mastercard payments network, coupled with survey-based estimates for certain other payment forms, such as cash and check.