US e-commerce sales rose in July! Demand for some categories fluctuated greatly

It is learned that according to data from MasterCard Spending Pulse, US retail spending improved in July, with e-commerce sales increasing significantly driven by Prime Day and other promotional activities.

Data showed that U.S. e-commerce sales increased 11.7% year-on-year in July, a sharp increase after several months of weak growth. At the same time, in-store sales remained high, up 11.1% year-on-year and 13.9% compared to before the epidemic in 2019.

Total U.S. retail sales rose 9% year-over-year. The report noted that July’s spending growth exceeded the monthly year-over-year growth so far in 2022, with both demand and price increases contributing factors.

The report shows that as consumers continued to spend in July, the impact of inflation varied by industry. For example, in the grocery industry, sales increased by 16.8% in July, mainly due to rising food prices. On the other hand, clothing (up 16.6%) and jewelry (up 18.6%) sales achieved strong year-on-year growth driven by demand, far exceeding inflation in specific industries.

Other highlights from the MasterSpending Pulse July report include:

• E-commerce sales climb amid promotions. U.S. e-commerce sales posted their first month of double-digit sales growth since December, at 11.7%, in July. (Compared with July 2019, sales were up 98.5%, or nearly double.) While online sales have been picking up since early June, major promotions in July, including Amazon’s Prime Day , helped entice shoppers to splurge (and save) on deals online.

• Fuel and convenience spending remained high, up 32.3% year-over-year. But the rate of increase was lower compared to June – reflecting lower prices at the pump.

• Cooling housing market slows sales of home-related goods. After heating up during the pandemic, the U.S. housing market has cooled significantly since the beginning of 2022, affecting consumer spending on home-related goods.

Sales growth has slowed in the home improvement (up 2.9% in July) and furniture and furnishings industries (up 5.0%).

•Department store sales increased 14% year-on-year in July.

The latest retail trends highlight that consumers are seeking affordable goods and shopping across channels. As retailers grapple with excess inventory and supply chain constraints, promotions will likely continue to be a key strategy for retailers in July.

Editor✎ Ashley/

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