According to Mastercard SpendingPulse, which measures in-store and online retail sales across all forms of payment, total retail sales, excluding auto, increased 8.4 percent year-over-year (YOY) in March and 18.0 percent compared to pre-pandemic spending (2019), not adjusted for inflation.

This is similar to the YOY growth experienced last month and slightly above January growth levels.

While the pandemic and lockdowns may have temporarily limited where consumers could spend their money and free time, key trends for March 2022 highlight the diversification of consumer spending across sectors and channels. Of note:

  • Goods and services: The highly anticipated return to travel drove YOY Airline growth, up 44.8 percent in March, while Restaurants (+19.1 percent) and Lodging (+46.4 percent) also grew. Luxury goods (+27.1 percent), Apparel (+16.0 percent) and Department Store (+14.0 percent) spending increased double-digits.
  • In-store and online: In-store sales continued to rebound, while e-commerce declined YOY in March. However, online sales are still up 83.7 percent versus pre-pandemic levels, while in-store sales are up 9.4 percent compared to March 2019.
  • Surf and Ski: Hawaii (+12.9 percent), Wyoming (+12.2 percent), Colorado (+11.0 percent), Florida (+9.7 percent), and Texas (+9.1 percent) topped the list of states with the strongest growth in March. Hawaii had the strongest growth rate for the month as the state has increased in popularity with honeymooners and tourists.
  • Fueling up and getting out: Fuel and Convenience spending saw YOY growth rates above 40 percent for most of the month. While much of the growth was driven by inflation at the pump, consumer mobility has continued to recover as commuter traffic and leisure travel increased.

“Retail sales remain strong but are stabilizing as consumers resume spending on passion areas like travel, live entertainment, indoor dining and other in-person activities,” said Steve Sadove, senior advisor for Mastercard and former CEO and chairman of Saks, Inc. “After nearly two years of cautious optimism around the broader reopening, it’s a healthy sign that consumers are returning to a balanced level of spending across retail sectors and services.”

Photo courtesy Kayak