Despite the new COVID-19 variant and higher prices, holiday sales have increased at the fastest pace in seventeen years, reports the National Retail Federation.
Compared to the pre-pandemic holiday span, overall sales were up 10.7%, mainly due to jewelry and clothing purchases. Clothing sales rose 47%, and jewelry sales rose 32%.
On Sunday, Mastercard Spending Pulse reported an 8.5% increase from 2020. The financial service company tracks various payments counting cash and debit cards.
The senior adviser for Mastercard, Steve Sadvove, said in regards to sales, “I feel really good about how the season played out. When people feel a little bit uncomfortable, you’ll see a little bit of a pickup in online and a little bit of a slowdown in-store performance.”
Online sales grew 11% from last year due to coronavirus concerns that kept some shoppers out of brick-and-mortar stores.
For those choosing to shop in-store, Sensormatic’s senior manager of retail consulting, Peter McCall, says that customers are more inclined to shop at outlets and open-air shopping centers versus enclosed malls.
According to the National Retail Federation, December sales were predicted to surpass the previously record-breaking forecast for a rise of 8.5% to 10.5% in comparison to 2020. The retail trade group will release its two-month results sometime in January. Data will include sales for November and December from the Commerce Department.
Amid rising sales, retailers have experienced some struggles, including providing higher wages for workers to obtain and keep adequate staff. They have also had trouble keeping their shelves stocked as many US ports are currently backlogged.
Consumers have learned to work around product shortages by outsourcing to several sites, such as eBay, for their needs.
The CEO for Target, Brian Cornell, has expressed that he feels it will take years before supply chains operate smoothly again.