Consumers cooler on home merchandise but still spending

Purchase, N.Y. – Spending increases in July outpaced monthly year-over-year growth seen so far in 2022, with demand and higher prices both contributing factors.

According to Mastercard SpendingPulse – which measures in-store and online retail sales across all forms of payment – U.S. retail spending excluding automotive increased +11.2% year-over-year in July, while retail sales excluding automotive and gas rose +9.0%.

MasterCard Spending Pulse July 2022 Sales growth for furniture & home furnishings sector was up 5.0%, climbing off last year’s boom but still up a whopping 33.2% compared to July 2019.

Other key takeaways:

In-store sales remained elevated – up 11.1% YOY and up 13.9% compared to July 2019.
E-commerce posted its first month of double-digit sales growth since December, up 11.7% YOY.
E-commerce was up nearly double pre-pandemic levels: +98.5% compared to July 2019. MasterCard attributed some of the growth to July’s major promotional events, which included Amazon Prime Day and piggyback sales offered by competitors.
Travel spending was strong in July, with lodging up 29.6% YOY and airline sales up+13.3% YOY.

“The latest retail trends place an emphasis on consumer choice and passion driven spending – they’re hunting for deals, shopping across channels and ultimately still spending on experiences and goods that make them feel good,” said Steve Sadove, senior advisor for Mastercard and former CEO and Chairman of Saks Incorporated. “As retailers grapple with excess inventory and supply chain constraints, it’s likely that the promotional activity seen in July will continue to be an important strategy for retailers.”