Spending at restaurants will surge 15.1% in 2022, outpacing online retail spending’s 10.6% growth, according to Mastercard’s SpendingPulse study.
Restaurants are set to be the biggest winners of the most likely normalized holiday season since the outbreak of the pandemic.
That’s according to a new study released Monday by Mastercard SpendingPulse, which shows that spending at restaurants surged 15.1% during the 2021 holiday period. Total retail spending from Nov. 1 to Dec. 2022 grew 7.6% in Q24, with in-store spending up 6.8% and online spending up 10.6%.
Restaurant spending beat out several other categories, including apparel, where spending increased by 4.4% from 2021, electronics and jewelry, where spending decreased by 5.3% and 5.4% respectively, and department stores, where spending increased by 1%. I was.
Steve Sadov, Senior Advisor to Mastercard and former CEO and Chairman of Sachs, said: Post-pandemic rally. ”
Private consumption increased by just 0.1%, according to government data for November. This reflects the cautious attitude of households and price cuts by retailers to entice hesitant shoppers. It’s a busy season, even as a deadly winter storm wreaks havoc on the plans of many Americans over Christmas weekend.
Of course, there are some merry people who are confident enough to make more plans and see more friends and family this year, but the virus, of course, continues to cause illness and death. 422 people died of COVID-19 on Wednesday, after reporting 70,000 newly diagnosed cases for the first time since September.
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Mastercard SpendingPulse data measures physical and online retail sales for all payment methods and is not adjusted for inflation.
As for businesses that might benefit from that traffic increase, the end-of-year cheer has probably been a difficult year for consumers with fears of inflation, rising interest rates, and an economic crisis. It won’t be enough to influence a war in Europe.
Invesco Dynamic Leisure & Entertainment Exchange Traded Fund (PEJ), which owns Chipotle Mexican Grill (CMG), McDonald’s (MCD) and First Watch Restaurant Group (FWRG), is up 6.5% so far in the fourth quarter and is down. increase. 20% per year as of Thursday. The broad benchmark, the S&P 500, could suffer losses of nearly 20% in 2022.
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