MasterCard: Online shopping declines

October report about retail spending

[dibbern2]

MasterCard's SpendingPulse report for October '08 points out that consumer spending is falling.

Big ticket items, clothing and on-line shopping were cut back according to the report which tracks US retail sales based on the MasterCard Worldwide payments network as well as purchases made by check and cash.

A spokesperson described "...key drivers to consumer spending have taken serious hits in the last six weeks." Rising unemployment seems to be the biggest factor, not the Wall Street meltdown.

Electronics and home appliances were hardest hit, with a 20% drop in sales. Specialty retailers also took a significant decline. The trend does not bode well for the holiday shopping season.

source: Chicago Tribune, Wednesday Nov. 5, 2008 [chicagotribune.com]

[edited by: martinibuster at 8:39 pm (utc) on Nov. 6, 2008]
[edit reason] Added URL. [/edit]

[asg333]

I have seen it here...slower sales although traffic is staying consistant. A lot of window shoppers....not many buyers at this point. Still trying to stay optomistic that it will pick up soon.

[Wlauzon]

It might also be due to the massive cutbacks that many companies, especially AMEX, are making to card holder credit limits, effectively maxing out the cards.