US holiday sales set to break records in surprise boon to retail

SEATTLE/CHICAGO: The US holiday shopping season is on track to break sales records on the back of surging consumer confidence and increased use of mobile devices, presenting an unexpected boon for retailers and the delivery companies they rely on.

The holiday shopping season, a crucial period for retailers that can account for up to 40 per cent of annual sales, brought recordbreaking online and in-store spending this year of more than US$800 billion, according to Mastercard Inc’s analytics arm.

Stakes are particularly high this year for traditional retailers that have invested heavily in technology and free delivery and returns, determined to stay relevant in a market increasingly dominated by Amazon. com Inc.

“It has been an extremely positive holiday season in terms of sales both for brick-and-mortar and for online businesses,” said Shelley Kohan, a Retail Fellow at analytics firm RetailNext.

Preliminary numbers show total holiday sales will exceed RetailNext’s initial forecast of a 3.8 per cent increase from last year. “All the economic indicators were very strong, and so I think consumers were more willing to open up their wallets and purses and spend more,” Kohan added.

RetailNext and most other analytics firms and industry groups - including Adobe Analytics and the National Retail Federation are due to publish holiday sales data in January.

Mastercard Inc said on Tuesday that a late-season rally had driven an 18.1 per cent rise in online sales. Department store chain Macy’s Inc and Target Corp both noted increased activity during that time.

Target spokesman Joshua Thomas told Reuters that during the week before Christmas the company had seen a marked increase in shoppers picking up online orders in stores, while Macy’s spokeswoman Blair Rosenberg said last-minute shoppers boosted fragrance sales during that period. — AFP