Mastercard: Retail sales rise 6.1% in June amid rising prices

In-store spending continued to outpace e-commerce sales year-over-year in June amid ongoing inflation.

According to Mastercard SpendingPulse, which measures in-store and online sales across all forms of payment, retail sales excluding auto and gas rose 6.1% year-over-year in June. Sales excluding auto but including fuel increased 9.5%.

Rising prices — particularly for essentials such as food and fuel — were a contributing factor, according to Mastercard SpendingPulse, which reflects nominal spending and is not adjusted for inflation. Excluding auto and gas, in-store spending rose 11.7% year-over-year in June, while e-commerce grew at a slower pace, up 1.1%. However, sales for e-commerce remain roughly double June 2019 levels.

Nominal spending growth is down slightly compared to May, though remains consistent with growth levels seen earlier in 2022.

As inflation persists, consumers are paying more for essentials, according to the report.  Two of the categories that have higher inflation have seen a lift in sales: Grocery sales rose 14% year-over-year in June and were up 24.8% compared to June 2019, while fuel & convenience sales rose 42.1% year-over-year and were up 55.7% compared to 2019.

Discretionary spending continued to drive growth across the fashion-forward sectors in June. And with summer in full swing, consumers continue to spend on leisure experiences. Airline sales rose 18.2% year-over-year in June and were up 7.3% compared to June 2019. Lodging sales rose 33.7% year-over-year and 30.4% compared to 2019.

Additional highlights from the latest Mastercard SpendingPulse report include:

• Apparel sales: Up 13.1% year-over-year;

• Department stores: Up 8.6%;

• Electronics/appliances: Up 4.6%;

• Fuel/convenience: Up 42.1%;

• Furniture/furnishings: Up 4.2%;

• Grocery: Up 14%;

• Hardware: Up 2.2%;

• Jewelry: Up 16.2%;

• Luxury (excluding jewelry): Up 4%; and

• Restaurants: Up 11.6%

“Sector by sector, we’re seeing a varied picture of how inflation is impacting essential vs discretionary consumer spending,” said Steve Sadove, senior advisor for Mastercard and former CEO and chairman of Saks Inc. “One notable highlight is that travel sectors such as airlines and lodging continue to show signs of strong demand.”