The inflationary spike in prices is not stopping consumers, according to the latest Mastercard SpendingPulse report.
During July, U.S. retail spending excluding automotive increased 11.2% year-over-year in July while retail sales excluding automotive and gas was up by 9%. E-commerce sales recorded a year-over-year increase of 11.7%, the first double-digit sales growth recorded since December.
Within the different retail sectors, jewelry sales recorded the greatest annual increase at 18.6%, followed by grocery sales at 16.8% and apparel with a 16.6% lift from July 2021.
The vacation season also witnessed increased sales, with lodging up 29.6% year-over-year and airline sales up 13.3% for the same period. Fuel and convenience spending was elevated at 32.3%, though the growth rate was down compared to June due to price declines at the pump.
“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,” said Steve Sadove, senior adviser for Purchase-headquartered Mastercard and former CEO and Chairman of Saks Incorporated. “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.”
