MasterCard SpendingPulse Shows Most Industry Segments Post Better Than Expected Overall November Sales

Retail sales in November improved in a number of sectors as the holiday season took off on a positive note, according to the MasterCard SpendingPulse report on U.S. Retail Industry Segments, released recently.

The SpendingPulse figures represent overall retail sales, and are based on aggregated spending activity in the MasterCard U.S. payments network coupled with estimates on all other payments forms, including cash and check. Auto sales are excluded.

Much of the boost in November's sales was due to increases in electronics sales, which, benefiting from hot product promotions grew at a 12 percent rate. Men's apparel sales grew 7 percent, just slightly more than total apparel sales (6.9 percent), helped by holiday shoppers responding to the cooler seasonal weather across the Northern regions. Lagging sectors for November overall included women's apparel (down 3.9 percent), furniture (a 3.5 percent drop) and furniture/furnishings (down 1.4 percent).

Overall, November's year-over-year growth in the eCommerce channel was up by a very robust 21.7%. Though there are days during the holiday shopping season that tend to have more volume than the Monday after Thanksgiving, this traditional kickoff day for online holiday sales made an even stronger showing.

Black Friday Results and Year-over-year Comparisons

"Black Friday, the traditional kickoff to the holiday shopping season, showed a strong increase in sales across the board, but this growth faded as the weekend progressed," noted Michael McNamara, vice president of research and analysis for MasterCard Advisors. "Indeed, overall sales for the holiday season are likely to show only moderate growth following Black Friday's surge." The spike and subsequent falloff was evident throughout numerous retail sectors.

Here are the Black Friday year-over-year growth rates:

• Total apparel was up 11.2 percent compared to Black Friday 2006, 5.9 percent for the entire holiday weekend.
• Men's apparel increased 7.7 percent on Black Friday, 4.4 percent for the total holiday weekend.
• Women's apparel was up 10.5 percent on Black Friday, 1 percent for the weekend
• Footwear was up 9.2 percent on Black Friday, 6 percent for the weekend.
• eCommerce sales were up 44 percent the first Monday after Thanksgiving and 30.5 percent on Black Friday.

About MasterCard Advisors
MasterCard Advisors, LLC, the professional services arm of MasterCard Worldwide, provides payments-focused consulting, information and outsourcing services to financial institutions and merchants worldwide. With its unparalleled category expertise, deep understanding of customer needs, and successful track record in addressing complex challenges throughout the payments lifecycle, MasterCard Advisors delivers customized end-to-end solutions that maximize the value of clients' cards and payments businesses. MasterCard Advisors shares the goals and vision of its clients, and works in partnership with them to deliver actionable insights that drive tangible impact and financial gain. For more information, go to www.mastercardadvisors.com.

About MasterCard Worldwide
MasterCard Worldwide advances global commerce by providing a critical economic link between financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes close to 16 billion payments each year, and provides industry-leading analysis and consulting services to financial institution customers and merchants. Through its family of brands, including MasterCard, Maestro and Cirrus, MasterCard Worldwide serves consumers and businesses in more than 210 countries and territories. For more information, go to www.mastercard.com.

SOURCE: MasterCard