With Low Gas Prices, U.S. Holiday Spending Jumps Nearly 8%

(RTTNews) - U.S. retail sales rose 7.9 percent this year during the holiday season, excluding sales of automobiles and gasoline, according to MasterCard. The rising strength of e-commerce was also visible, with online sales up 20 percent this year.

Pent-up demand for women's apparel and strong online sales helped to boost holiday sales. The savings from lower gasoline prices enabled consumers to spend more on purchases during the holiday season this year.

MasterCard Spending Pulse reports on national U.S. retail sales across all payments types. 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.

Excluding automobiles and gas, U.S. retail sales had increased 5.5 percent during the holiday season last year. Overall retail sales, excluding auto and gas, across all card and payment types, grew 4.6 percent from November through December this year, compared to last year.

Including gas, growth was just 2.7 percent, reflecting the lower gas prices and reinforcing the fact that consumers are spending the money saved by them at the pump.

Sarah Quinlan, SVP, Market Insights for MasterCard Advisors, said, "We saw some very promising trends. The double-digit growth in furniture sales, for instance, shows that consumers are willing and able to splurge on big ticket items. eCommerce's rise is a solid indication of an empowered and savvy shopper."

According to MasterCard's Spending Pulse figures, the biggest winners this season from the Black Friday through Christmas Eve period were eCommerce and furniture, with both recording double-digit growth.

Online sales grew roughly 20 percent compared to last year, with 70 percent of U.S. consumers reporting doing more research online than before. On the flip side, sales of electronics and men's apparel lagged well behind.

Overall, apparel saw high single-digit growth during the Black Friday to Christmas Eve period. Women's apparel sales rose double-digits, while sales of men's apparel declined.

A delay in the onset of cold weather pushed back apparel buying this fall and the pent up demand played out following Black Friday, according to MasterCard.