The sharp rise in gas prices may put a hold on overall economic growth, and that’s bad news for spending on entertainment, home improvement and travel, according to Discover Financial Service’s U.S. Spending Monitor. But based on historical results, ecommerce should see a lift.
Gas prices rose 12 cents over the past two weeks to $3.68 a gallon, according to the U.S. Energy Information Administration. And based on what MasterCard Advisors SpendingPulse has seen in the last three to four years, high gasoline prices typically result in consumers consolidating shopping trips, shopping closer to home, and making fewer trips to the brick-and-mortar locations.
“On the other hand, we’ve seen the ecommerce channel benefitting somewhat from this trend,” said Michael McNamara, vice president—research and analysis for MasterCard Advisors SpendingPulse in a press release.
Online sales grew for the fifth consecutive month, according to MasterCard Advisors SpendingPulse, a macroeconomic report tracking national retail and services sales. Ecommerce sales increased 16.1% in March, compared to last year, which was even higher than February’s 13.2% rise in sales.
Ecommerce sales of apparel were up 18.7%, and electronics rose 14%. The report also noted that department stores saw an 8.4% rise in online sales.
A late Easter this year—the latest one since 1943—may help the overall economy a bit, according to the National Retail Federation.
The NRF’s Intentions and Actions survey, conducted by BIGresearch, shows the average consumer is expected to spend $131.04 on Easter items from candy to clothing. That’s up from last year’s $118.60, but not quite to prerecession levels.