New Recovery Insights Report Spotlights the Impacts of COVID-19
Consumer spending appears to be normalizing in a number of markets, according to Mastercard SpendingPulse1, which tracks overall retail sales across all payment types, including cash and check. To dig into this further, Mastercard today released the first report in its Recovery Insights series, which sheds light on the impacts of the pandemic and stay-at-home orders, including the incredible growth of online shopping.
In the U.S., per Mastercard SpendingPulse, total retail sales for May saw a marked improvement from April (-5.6% ex-auto year over year compared with -14.1%, respectively) as some states started the reopening process and stimulus funds continued to buoy consumer spending. Meanwhile, U.S. e-commerce sales, per Mastercard SpendingPulse, were up 92.7 percent in May, underscoring the broader shift to digital in how we work, live and shop. Note that e-commerce follows the Census definition*.
While the shift to digital has not been universal or consistent – due to geographical, economic, and household differences – there are a number of key overarching trends:
“The shift to digital ways of shopping has been undeniable, while everything else has been incredibly unpredictable,” says Steve Sadove, Mastercard senior advisor and former CEO of Saks. “The question is what changes will stick around for the long-term. Investing in your home and shopping local are two recent trends. Heightened demand for touchless services is another, which could have tremendous impact on what stores actually look like and how they blend their online and brick and mortar footprints.”
Mastercard has been committed to helping retailers, restaurants, CPG brands and many others navigate the challenges of the pandemic – and now the recovery. This has included making certain insight-driven tools available at no cost to governments and small businesses to give a timely snapshot of economic performance during this time. Having the ability to make informed decisions is critical to the long-term success of companies, communities and individuals around the world.
1About Mastercard SpendingPulse
Mastercard SpendingPulse™ reports on national retail sales across all payment types in select markets around the world. The findings are based on aggregate sales activity in the Mastercard payments network, coupled with survey-based estimates for certain other payment forms, such as cash and check. As such, SpendingPulse™ insights do not in any way contain, reflect or relate to actual Mastercard operational or financial performance, or specific payment-card-issuer data.
*E-commerce sales are sales of goods and services where the buyer places an order, or the price and terms of the sale are negotiated over an Internet, mobile device (M-commerce), extranet, Electronic Data Interchange (EDI) network, electronic mail, or other comparable online system. Payment may or may not be made online.
About Mastercard Recovery Insights
Mastercard launched Recovery Insights to help businesses and governments better manage the health, safety and economic risks presented by COVID-19. The initiative draws on Mastercard's analytics and experimentation platforms, its longstanding consulting practice and unique data-driven insights to deliver relevant and timely tools, innovation and research.
About Mastercard (NYSE:MA)
Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. Our decency quotient, or DQ, drives our culture and everything we do inside and outside of our company. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all.