PURCHASE, NY–(BUSINESS WIRE)–April 6, 2022–
As we have passed two years since the first Covid lockdowns, March reinforced the ongoing rebalancing towards pre-pandemic consumption patterns. From airlines to accommodation, spending on services is making a comeback, while in-store retail sales are rebounding as consumer mobility increases. According to Mastercard SpendingPulse™, which measures in-store and online retail sales for all payment methods, total non-automotive retail sales increased 8.4% year-over-year (YOY) and 18.0% compared to pre-pandemic (2019) spending, not adjusted for inflation. This is similar to the year-on-year growth recorded last month and slightly above January growth levels.
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Mastercard SpendingPulse, US Snapshot – March 2022 (Graphic: Business Wire)
While the pandemic and lockdowns may have temporarily limited where consumers could spend their wages and free time, key trends for March 2022 highlight the diversification of consumer spending across sectors and channels. To note :
- Goods and services: Airline spending soared as the much-anticipated return to travel boosted airline growth 44.8% in March, while restaurants (+19.1%) and accommodation (+46 .4%) also increased significantly. But the rise in services did not curb spending on goods since the Luxury (+27.1%), Clothing (+16.0%) and Department Stores (+14.0%) sectors experienced double-digit growth.
- In store AND online: In-store sales continued to rebound, while e-commerce declined year-on-year in March. However, online sales are still up 83.7% from pre-pandemic levels, while in-store sales are up 9.4% from March 2019.
- Surfing AND skiing: Hawaii (+12.9%), Wyoming (+12.2%), Colorado (+11.0%), Florida (+9.7%) and Texas (+9.1%) topped the list of States with the strongest growth rates in March. Hawaii saw the highest rate of growth this month as the state gained popularity with many honeymooners and tourists seeking an escape within US borders.
- Refuel AND exit: Spending on fuel and amenities recorded annual growth rates above 40% for most of the month. While much of the growth is driven by inflation at the pump, consumer mobility has continued to recover as commuter traffic and leisure travel pick up.
“Retail sales remain strong but are stabilizing as consumers return to spending on passion areas like travel, live entertainment, indoor dining and other in-person activities,” said Steve Sadove, adviser Principal of Mastercard and former CEO and Chairman of Saks Incorporated. “After nearly two years of cautious optimism around a wider reopening, it’s a good sign that consumers are returning to a balanced level of spending in the retail and service sectors.”
*Excluding car sales. Mastercard SpendingPulse defines US retail sales as sales at foodservice retailers and merchants of all sizes; commercial activity in the service sector is not included.
About Mastercard SpendingPulse:
Mastercard SpendingPulse reports domestic retail sales for all payment types in select markets around the world. Results are based on overall sales activity in the Mastercard payment network, coupled with survey-based estimates for certain other payment methods, such as cash and check.
Mastercard SpendingPulse defines “US retail sales” as sales at retailers and foodservice merchants of all sizes. Sales activities in the service sector (eg travel services such as airlines and accommodation) 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 our company. With connections in more than 210 countries and territories, we are building a sustainable world that unlocks invaluable opportunity for all.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20220405006273/en/
Julia Monti, Mastercard
Alexandria Pierroz, Mastercard
KEYWORD: NEW YORK UNITED STATES NORTH AMERICA
KEYWORD INDUSTRY: TECHNOLOGY FINANCE SECURITY BANKING PROFESSIONAL SERVICES SOFTWARE NETWORKS INTERNET DATA MANAGEMENT
SOURCE: Mastercard Investor Relations
Copyright BusinessWire 2022.
PUBLISHED: 04/06/2022 09:01 AM/DISC: 04/06/2022 09:02 AM
Copyright BusinessWire 2022.