Despite the threat of Omicron and increased inflation, consumer spending for the month of January ‘22 shows a positive outlook for the retail economy. As per a study conducted by Mastercard SpendingPulse, U.S. retail sales (excluding the auto sector) saw a sharp increase of 7.2% year-over-year (YOY).

Online sales also grew by a whopping 10.4% as compared to January 2021. Good savings and substantial wage growth are considered as the primary reasons for this positive growth even during tough economic times. Apparel, Luxury, and Department Stores witnessed an impressive double-digit growth, as per the research findings.

“Coming on the heels of the holidays, January typically marks a month of returns and exchanges. However, the strong growth across sectors reflects the optimism and eagerness for the year ahead,” asserts Steve Sadove, senior advisor for Mastercard.

Key Findings of Report

● Restaurant sales grew by 36.7% YOY and 16.6% as compared to pre-pandemic levels
● E-commerce sales grew by a whopping 110%, clearly reflecting the preference of people of shifting towards digital
● Apparel sales grew by 37.6% YOY
● Luxury (+45% YOY)
● Jewelry (+19.8% YOY)

Mastercard SpendingPulse analyzes ‘U.S. Retail Sales’ for merchants of all sizes. It also does retail analysis for select markets around the world. Its findings are carefully evaluated after analyzing aggregate sales activity in the Mastercard payments network and doing extensive surveys as well.