Christmas retail sales increased 3% as more people buy decor and furniture for their homes

Christmas retail sales increased 3% as more people buy decor and furniture for their homes

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Unsurprisingly, furniture and home improvement items were big sellers this holiday season, helping to give retail sales a 3% increase during the expansion of this year’s Christmas shopping season, according to a report by MasterCard (BAD) SpendingPulse.

Online shopping sales also grew 49% between October 11 and December 24, further emphasizing how the Covid-19 pandemic reshaped shopping habits.

The longer-than-average holiday season, which started with a delay on Amazon Prime Day, was marked by a series of retailers offering special offers and promotions to encourage customers to make early purchases to ensure on-time deliveries.

But retailers’ increase in shopping and shipping advantages has led to a decline in last-minute shoppers over the previous year, the report concluded, with online shopping sales representing 19.7% of total retail sales. And Black Friday, a major unofficial holiday, marked by unprecedented deals, was the day with the most expenses of the season.

The increase in sales and purchase dates was “a testament to the holiday season and the strength of retailers and consumers,” said Steve Sadove, senior consultant at Mastercard and former CEO and president of Saks Incorporated, in a statement.

“American consumers have turned the holiday season upside down, redefining ‘home for the holidays’ exclusively for 2020. They bought from home to home, leading to record e-commerce growth,” said Sadove.

Meanwhile, department stores and apparel brands saw sales decline, down 10.2% year-on-year and 19.1%, respectively, according to the Mastercard report. This is because many stores have been overwhelmed by debt and changes in shopping trends caused by the pandemic. About 30 retailers and restaurant chains were forced to file for bankruptcy.

Despite this, retail offers, including sidewalk pickup and online shopping, have led to an incremental growth in e-commerce sales. Clothing sales increased 15.7% and sales in department stores, 3.3%, at a time when more buyers were focusing their attention and buying decisions on their homes. Sales of furniture and furniture increased 6.2%, while spending on home renovations increased 14.1%, the report finds. Sales of electronics and appliances also followed suit, increasing by 6%.

Changes in end-of-year shopping underscore how the pandemic’s impact on outdoor activities has led shoppers to make purchases more suitable for the countryside and with more time at home.

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