2015 Holiday Sales and Payment Processing Review

The 2015 holiday season is in the books. Retail revenue numbers are in, and it looks like this was one of the most profitable holiday spending seasons in recent memory. If you’re like many Americans, you probably did at least some of your holiday shopping online between Black Friday and Christmas Eve. Find out more about how the season shaped up for retailers below.

2015 Holiday Sales Statistics

According to the National Retail Federation, average winter holidays spending in the U.S. in 2015 totaled around $630.5 billion. That is a significant increase over the prior year, when sales reached a total of around $608.2 billion. Average holiday spending per person remained somewhat steady, with each person spending an average of $806 total and around $594 for gifts. The previous year, the average U.S. consumer spent a total of $804 total and around $595 for gifts.

Most interesting of all, however, is the data concerning online holiday spending. On Cyber Monday 2014, online sales totaled around $2.7 billion. The previous year, they totaled around $2.3 billion. Information regarding online sales for 2015 is not yet available, but it appears that online holiday spending is on an upward trajectory.

Finally, MasterCard SpendingPulse recently published some interesting information regarding 2015 holiday spending. Retail sales were up by 7.9 percent, and online sales shot up by an incredible 20 percent. This robust holiday spending season is largely being attributed to the improving economy as well as low gas prices.

Holiday Sales and the Electronic Payments Industry

Based on the information above, it’s easy to surmise that electronic payments were being processed at extremely high volumes between Black Friday and Christmas Eve. Fortunately, Axis Payments has the technology and bandwidth that are needed to handle this type of volume without incident. 2015 also saw a significant increase in the popularity of mobile payments, with options like Apply Pay, Android Pay, Google Wallet and Samsung Pay all becoming more widely accessible. Mobile payments haven’t quite caught on yet, but 2016 is poised to be the year in which they become a lot more mainstream. Without question, mobile payments will have a profound impact on the 2016 holiday spending season, and we will be here to report on everything when the time comes.

Black Friday Leaves Retailers In The Black

photo credit http://3dprint.com

photo credit http://3dprint.com

by Axis Payments

Believe it or not, the holiday season is upon us once again, which means that the biggest sales season of the year is also close at hand. Of all the occasions for increased economic activity on the retail level, the holiday season is by far the biggest stimulus of sales. This year should be no exception, with yet another record breaking year predicted.

A Fifth of All Sales

Not everyone appreciates just how big, and how vital, the holiday shopping season is to our economy. The truth is that nearly 20%, or a fifth of all retail sales for the year, occur during the holiday season. For many businesses, that amount falls well withing the margin of what they need to sell to have a profitable year. In other words, many businesses depend on holiday season sales to keep their doors open. Many people also depend on the holiday sales season for employment, as retailers typically hire over 750,000 seasonal workers each year.

Black Friday

There is really no official start to the holiday shopping season. Much depends on the type of business, for some it may start as early as September or not kick in until the last weeks of December. However, for most retailers the unofficial kick-off day is the day after Thanksgiving, generally known as Black Friday.

Cyber Monday

A newer, but fast growing companion to Black Friday is Cyber Monday, which falls on the first Monday after Black Friday. This day is devoted to the promotion of e-commerce, the buying and selling of things online. Once only a small fraction of holiday sales, online shopping has boomed in recent years. In 2010, retails analysts predicted that e-commerce holiday shopping would pass $300 billion in 2017. However, that milestone is expected to be blown past this year, as the 2015 shopping season is expected to produce at least $325 billion in retail sales.

Long Term Trends

It can be safely assumed that people will always enjoy doing some of their holiday shopping in actual brick and mortar stores. Yet, an ever increasing amount of shopping will also be done online, with average year to year growth in e-commerce holiday shopping averaging around five or six percent growth each holiday season since 2009. With record breaking sales expected once again this year, every business will want to be fully prepared to handle that extra business and all of the electronic payments that the increase will entail. For those businesses that are prepared, 2015 should be a very happy holiday season.

Copyright 2015 Axis Payments