NEW YORK – U.S. retail sales rose 3.5 percent during the holiday season this year, helped by deep discounts at malls and purchases of children’s apparel and jewelry, MasterCard Advisors SpendingPulse said.
Sales of holiday-related categories, such as clothing, electronics and luxury goods, rose 2.3 percent from Nov. 1 through Dec. 24 compared with a year earlier, the Purchase, New York-based research firm said Thursday. SpendingPulse tracks total U.S. sales at stores and online via all payment forms.
Falling store traffic in recent weeks and uneven demand, especially for apparel, spurred chains to risk earnings by pouring on the discounts to generate sales. Retailers including Gap Inc. were offering as much as 75 percent off and some, including Macy’s Inc. and Kohl’s Corp., were keeping stores open around the clock starting Dec. 20.
“You are seeing, ‘It’s OK for me to go out and spend,’” Sarah Quinlan, a senior vice president at MasterCard Advisors, said in a phone interview on Thursday. “That being said, they are still being cautious, and they are picking their retailers. It is not hot 2006-2007 spending we are seeing.”
Sales were strongest in jewelry and children’s apparel, while sales of electronics and luxury items excluding jewelry were about the same as the same period last year, SpendingPulse said. Sales of women’s and men’s apparel fell from last year, the researcher said.
The Standard & Poor’s 500 Retailing Index rose 0.4 percent at 10:50 a.m. in New York, compared with a 0.2 percent gain for the broader S&P 500. The 30-company retail index jumped 43 percent this year through Dec. 24.
The SpendingPulse data largely tracked researchers’ expectations for the holiday season. The National Retail Federation reiterated on Dec. 12 its prediction that total sales will rise 3.9 percent in November and December, more than the 3.5 percent gain a year ago. Chicago-based researcher ShopperTrak has said holiday purchases will rise 2.4 percent, the smallest gain since 2009.