News

Retail spend increases 5.1 percent Thanksgiving through Christmas

December 31, 2018

Thanksgiving-through-Christmas spending jumped 5.1 percent this year, exceeding $850 billion, marking the strongest growth in the last six years, according to MasterCard SpendingPulse, a service that provides insight across all types of payment, including cash and check. Online shopping spiked 19.1 percent over last year's volume. 

"From shopping aisles to online carts, consumer confidence translated into holiday cheer for retail," Steve Sadove, senior advisor for Mastercard and former CEO and chairman of Saks Inc., said in a press release. "By combining the right inventory with the right mix of online versus in-store, many retailers were able to give consumers what they wanted via the right shopping channels."

The report, which measures shopping from Nov. 1 through Dec. 24, detailed category variances:

• Total apparel rose 7.9 percent compared to 2017, marking the category's best growth rate since 2010. The growth began during the back-to-school season and accelerated through Christmas.
• Home improvement spending jumped 9 percent, with growth beginning before the holiday season.
• Home furnishings grew 2.3 percent, while electronics and appliances fell 0.7 percent.

Department stores posted a 1.3 percent decline from 2017, following two years with growth below 2 percent, some of which was due to store closings. However, department stores' online sales grew 10.2 percent.

Poor weather was a factor during some prime shopping periods. The East Coast suffered cold weather on Black Friday morning and wet weather the Dec. 15-16 weekend. The East Coast also had less than ideal weather Friday, Dec. 21, and suffered storms during the final days of the season. The West Coast experienced wet weather during the Dec. 15-16 weekend.