E-Commerce Strength Boosted November Retail Sales
December 03 2020 - 7:31AM
Dow Jones News
By Matt Grossman
U.S. retail spending edged higher last month despite the
continuing coronavirus pandemic as a surge in online shopping
boosted sales, according to data from Mastercard Inc.
The data, which cover cash and check payments as well as credit
cards, show that consumer spending rose 3.1% year over year in
November, excluding car sales. Excluding gasoline as well, spending
rose 5.1%, according to Mastercard.
Shoppers spent more on furniture, groceries and hardware in the
month, with each of those categories rising by double-digit
percentages. Apparel spending fell by 21%, and department-store
sales declined by 15%.
As shopping continues to shift online during the public-health
crisis, e-commerce spending rose by 53% compared with last November
to make up 18% of the month's total retail sales, excluding cars.
Big retailers with robust online sales platforms such as Walmart
Inc., Target Corp. and Home Depot Inc. have experienced booms in
digital shopping this year as people hoping to avoid crowds during
the pandemic place orders from home.
Holiday shopping -- more of which took place before Black Friday
this year -- drove a portion of the November spending growth,
according to Mastercard. Because of the pandemic, many retailers
launched seasonal promotions well before the holiday shopping
season's traditional start on the Friday after Thanksgiving, to
avoid attracting large crowds.
Customers also reacted last month to rising virus cases and the
prospect of more government restrictions by stocking up on
groceries and continuing to spend more on home goods, Mastercard
said. Grocery sales rose 10% year over year in November, while
spending on furniture and furnishings climbed 16%.
The same mind-set also drove more spending on electronics and
appliances, for which sales rose 8.2% year over year in November.
More cooking at home and more new residential construction this
year have left buyers clamoring for products such as refrigerators
and dishwashers, stretching appliance showrooms thin, said Chad
Lyon, a Wells Fargo & Co. banker whose group finances appliance
retailers' inventories.
"You've really seen retail demand spike," Mr. Lyon said. "The
manufacturers have been playing some level of catch-up."
Soaring online sales also extended to fashion. Despite falling
apparel sales overall, e-commerce spending on apparel rose 13% year
over year in November.
Online jewelry sales jumped 46%.
In a sign that fashion companies are more focused on their
internet presence during the pandemic, Swiss luxury-goods giant
Compagnie Financière Richemont, which owns the Cartier jewelry
brand, said last month it planned to invest $550 million in
Farfetch, a French fashion website.
The deal will help Richemont improve its reach outside of
traditional stores, Richemont Chairman Johann Rupert said.
(END) Dow Jones Newswires
December 03, 2020 07:16 ET (12:16 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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