E-commerce

E-commerce shopping remains high amid inflation

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August 18, 2022

July was a robust e-commerce month as U.S. consumers continued to spend despite increasing inflation, according to a Mastercard SpendingPulse report that measures in-store and online retail sales across all forms of payment.

The U.S. retail spending, excluding automotive, increased 11.2% year-over-year in July, while retail sales, excluding automotive and gas, rose 9%, according to a press release.

E-commerce sales were up 11.7% year-over-year, a sharp increase after months of softer growth. Rising prices — for necessities such as food and fuel — were a contributing factor, according to the release.

The grocery sector saw sales up 16.8% compared to a year ago July due primarily to food price increases.

"The latest retail trends place an emphasis on consumer choice and passion driven spending — they're hunting for deals, shopping across channels and ultimately still spending on experiences and goods that make them feel good," Steve Sadove, senior advisor for Mastercard and former CEO and chairman of Saks Inc., said in the release. "As retailers grapple with excess inventory and supply chain constraints, it's likely that the promotional activity seen in July will continue to be an important strategy for retailers."