Mastercard SpendingPulse: Child Tax Credit Helps Lift U.S. Retail Sales Growth to 10.9%* in July
August 05 2021 - 9:01AM
Business Wire
In-store sales grew 15.5%, exceeding
pre-pandemic levels
Retail sales in the U.S. grew for the 11th consecutive month in
July, according to Mastercard SpendingPulse™, which measures
in-store and online retail sales across all forms of payment. With
more cash in hand—fueled in part by the Child Tax Credit and
pent-up savings—consumers drove U.S. retail spending growth,
excluding automotive and gasoline, to +10.9% compared to July 2020.
This is nearly quadruple the average growth in the month of
July**.
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At a national level, back-to-school shopping is well underway,
impacting a number of sectors as anticipated in our forecast.
Overall, key retail trends from July include:
- Child Tax Credit Boosts Department Stores and Apparel
Sales: The first of six monthly Child Tax Credit payments
provided parents with an infusion of cash during the peak
back-to-school shopping season, with Apparel (+80% YOY) and
Department Store (+44.8% YOY) sectors seeing an uptick in sales for
the month. This was concentrated in the days immediately following
the first distribution on July 15.
- Return of the In-Store Shopper: Brick-and-mortar
browsing is making its return, with in-stores sales making up 81.9%
of total retail sales (ex auto) for the month. According to
Mastercard SpendingPulse, in-store sales were up +15.5% YOY in July
and weekends experienced positive spikes in spending as a result of
in-store shoppers returning to physical stores.
- Making a House a Home: According to data released by the
U.S. Census Bureau, new home sales have fallen to an 18-month low.
However, consumers are still eager to turn their houses into homes
as the Furniture & Furnishings sector continues to grow on a
YOY (+3.2%) and YO2Y (+26.8%) basis.
“While e-commerce continues to play an increasingly significant
role for retail, nothing replaces the in-store experience,” said
Steve Sadove, senior advisor for Mastercard and former CEO and
Chairman of Saks Incorporated. “July numbers reflect a return to
the store. Consumers are shopping, spending and splurging across
channels.”
Mastercard’s chief economist and head of the Mastercard
Economics Institute Bricklin Dwyer said, “Back to school shopping
is back. Combined with greater savings and higher demand, the Child
Tax Credit has provided a boost for families and is putting more
money into retailers’ pockets.”
*Excluding auto and gas **The average year-over-year growth in
July over the past four years was 2.9%
About Mastercard SpendingPulse Mastercard SpendingPulse™
reports on national retail sales across all payment types in select
markets around the world. The findings are based on aggregate sales
activity in the Mastercard payments network, coupled with
survey-based estimates for certain other payment forms, such as
cash and check. As such, SpendingPulse™ insights do not in any way
contain, reflect or relate to actual Mastercard operational or
financial performance, or specific payment-card-issuer data.
Mastercard SpendingPulse defines “U.S. retail sales” as sales at
retailers and food services merchants of all sizes. Sales activity
within the services sector (for example, travel services such as
airlines and lodging) are not included.
About Mastercard (NYSE:MA) Mastercard is a global
technology company in the payments industry. Our mission is to
connect and power an inclusive, digital economy that benefits
everyone, everywhere by making transactions safe, simple, smart and
accessible. Using secure data and networks, partnerships and
passion, our innovations and solutions help individuals, financial
institutions, governments and businesses realize their greatest
potential. Our decency quotient, or DQ, drives our culture and
everything we do inside and outside of our company. With
connections across more than 210 countries and territories, we are
building a sustainable world that unlocks priceless possibilities
for all.
www.mastercard.com
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version on businesswire.com: https://www.businesswire.com/news/home/20210805005340/en/
Media William Tsang, Mastercard 914.249.2640 |
William.Tsang@mastercard.com
Julia Monti, Mastercard 914.217.9533 |
Julia.Monti@mastercard.com
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