Retail sales experienced strong growth in December 2021, ending a strong shopping season.
Mastercard SpendingPulse revealed positive sales figures for retailers, which measure retail sales in stores and online across all forms of payment.
According to the report, the holiday season saw retail sales numbers grow by 8.5%, excluding the auto numbers.
Mastercard SpendingPulse – Retail Sales Grown in December
The report lists a glimpse of sales growth by segment. It found that restaurants saw the highest sales growth, jumping 51.9% over numbers for the same period in 2020.
The luxury sector was the second-best sector in terms of sales during the holiday period, a jump of 46.8% from 2020.
The festive period proved successful for sellers of luxury goods, with the exception of jewelry, which saw a 46.8% increase in sales from the previous year.
Apparel was also doing well, with numbers up 46.3% over the previous holiday season.
Electronics and appliances also saw strong growth, with an increase of 19.1% compared to the 2020 holiday season.
Optimistic sales forecast for retailers
The data is important for small businesses because it confirms that despite the year’s challenges and supply chain issues, many sectors enjoyed strong sales over the holidays. This should set the trend for a positive and upbeat start to 2022 for retailers.
Additionally, for entrepreneurs who are considering starting their own business or small business owners who are mastering ideas, the report shows which sectors typically perform best.
The research also highlights the growing demand for online sales.
Referring to the “e-commerce volution,” the authors of the Mastercard report note:
“Retailers and brands have spent a lot of the pandemic shifting or expanding their digital channels, which we see is reflected in the SpendingPulse numbers as online sales continued to post solid growth in December (+13.5% yoy / +60.4% yoy).
“In 2022, innovation will be amplified with retailers looking for different platforms and methods to reach highly connected consumers.”
The report also notes that innovation has been vital to the success and growth of retailers, as companies continue to think outside of physical stores. It also underscores the growing focus on consumer privacy and how retailers will need to find new ways to effectively understand and engage digital consumers.