Child Tax Credit helps lift US retail sales growth to 10.9% in July

10
Aug '21
Pic: Shutterstock
US retail sales grew for the 11th consecutive month in July, says Mastercard SpendingPulse, which measures in-store and online retail sales across all payment forms. With more cash in hand—fueled in part by the Child Tax Credit and pent-up savings—consumers drove retail spending growth excluding automotive and gasoline to 10.9 per cent compared to July 2020.

This is nearly quadruple the average growth in the month of July.

At a national level, back-to-school shopping is well under way, affecting a number of sectors as anticipated in the company’s forecast.

Child Tax Credit boosted department stores and apparel sales. The first of six monthly Child Tax Credit payments provided parents with an infusion of cash during the peak back-to-school shopping season, with apparel (80 per cent year on year) and department store (44.8 per cent year on year) sectors seeing an uptick in sales for the month. This was concentrated in the days immediately following the first distribution on July 15.

Brick-and-mortar browsing is making its return, with in-stores sales making up 81.9 per cent of total retail sales (ex auto) for the month. In-store sales were up by 15.5 per cent year on year in July and weekends experienced positive spikes in spending as a result of in-store shoppers returning to physical stores, MasterCard said in a press release.

“While e-commerce continues to play an increasingly significant role for retail, nothing replaces the in-store experience,” said Steve Sadove, senior advisor for Mastercard. “July numbers reflect a return to the store. Consumers are shopping, spending and splurging across channels,” he added.

Fibre2Fashion News Desk (DS)


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