Table of Contents
NEW YORK — A last-minute rush lifted holiday sales growth to its highest level in three years.
A last-minute rush lifted holiday sales growth to its highest level in three years.
A swell of shoppers on the Saturday before Christmas pushed up volume at the end of the season. Helping bring out crowds were low gas prices, a stronger job market, economic expansion and a seven-year peak in consumer confidence.
According to MasterCard SpendingPulse daily reporting and forecasts, six of the top 12 shopping days of the holiday season came between December 18 and December 24.
"This final week before the holiday is the peak season for procrastinators and last-minute deal seekers," said Sarah Quinlan, senior vice president at MasterCard Advisors.
Overall, retail sales during the Black Friday to Christmas Eve period — excluding automotive sales — increased 5.5%, according to the MasterCard forecasting service. The increase was in line with original SpendingPulse projections and reflected one additional shopping day over 2013.
"This holiday season was a social one," noted Quinlan. "While certain retail categories saw steady performance from prior months, the focus on creating experiences stayed at the top of many lists. From dining out to planning trips to memorable pieces of jewelry, we saw increases in those categories that will drive future stories beyond just a package exchanged with a friend or family member."
Based on initial analysis, the jewelry and women’s apparel sectors performed stronger than other categories.
While late consumer spending was the difference maker, November sales served as a sign of good things to come. The Department of Commerce reported hefty November gains in sales of electronics (up 6.9%) and at health and personal care stores (up 6.8%). Solid gains were also observed in food and beverage (up 4.1%) and clothing and accessories (up 3.6%) stores. The sale of seasonal apparel likely contributed to the overall strength and increase in clothing and accessory sales.
The fact that sporting goods, hobby, book and music stores reported a 3.2% increase in November, a better-than-anticipated result for that category, further pointed to healthy discretionary spending. And general merchandise stores recorded a 2.6% gain.
Solid sales up to and including Black Friday were proof "that consumers are still heading to stores and making purchases this holiday," said Jesse Tron of the International Council of Shopping Centers. "During the Thanksgiving and Black Friday holiday weekend, we also found that many consumers reported being behind on their holiday shopping, signaling more good news for December."
According to the National Retail Federation’s (NRF’s) Holiday Consumer Spending Survey conducted by Prosper Insights & Analytics, the average holiday shopper completed 52.9% of his or her shopping as of December 10, up from 49.9% the prior year.
"This year we witnessed ‘a tale of two holiday shoppers’ with many jumping on retailers’ early, hard-to-pass-up in-store and online promotions, and others waiting until the last minute to wrap up their lists," said NRF president and chief executive officer Matthew Shay.
