Shopping Frenzy Expected Thanksgiving Week as People Hunt Deals, Inventory
Shoppers are anticipated to hit stores and apps in full force Thanksgiving week Nov. 22-28 to get a jump on holiday deals and inventory, with overall retail sales forecasted to go up 10% year-on-year (YOY) and 12.2% year-on-two-years (YO2Y).
According to the Monday (Nov. 15) Mastercard SpendingPulse report emailed to PYMNTS, eCommerce sales alone are anticipated to rise 7.1% YOY and 50.2% YO2Y for the week of Thanksgiving compared to the same time in 2019.
The Mastercard SpendingPulse report measures overall retail sales across all payment types, including cash, check, and eCommerce.
Last month, SpendingPulse data showed that retail sales grew 6.1% YOY, kicking off the start of a strong holiday shopping season, according to the report.
See also: Mastercard: September Retail Sales Growth Led by Apparel, Jewelry
Supply chain disruptions brought on by pandemic lockdowns have reduced inventory volumes across most categories of goods. Coupled with consumers’ heightened demand for merchandise, the holiday season is on track to be a “seller’s market for retailers.”
Discounts are expected to be limited compared to previous years during Thanksgiving week, which is traditionally known for bargains and Black Friday doorbuster steals.
Spending on apparel is anticipated to be 56% higher this year over last, with electronics spending up 29.6%, and outlay for jewelry up 39.7%. Retailers could keep discounts at bay to manage supply.
Read more: Mastercard Predicts 7.4% Retail Growth During Holiday Shopping Season
“Holiday lights are shining bright for retailers this year,” said Steve Sadove, senior advisor for Mastercard and former CEO and chairman of Saks Incorporated. “The consumer is strong and spending. With discounts in short supply, product innovation, availability and sustainability will be deciding factors for consumers eager to cross off their holiday shopping lists.”
While Black Friday sales were subdued last year due to the COVID-19, this year is anticipated to bring in over 20% more in sales as life gets closer to a pre-pandemic normal.