Additional Shopping Day Means More Money on Cards This Year, Retailers Said

WASHINGTON -- The National Retail Federation, the major trade association for the nation's retailers, estimates that an additional day available for holiday shopping this year compared to last year means a boost in the use of cards.

The retailers predicted that $148 billion will flow from consumers into retail coffers this holiday season, with card sales rising an additional 5% over non-card sales. Last year, shopping with cards during the holiday season rose by 12%.

The association estimated that Signature debit card use is expected to increase by more than 16%, while store credit cards will be up about 8.5%. Credit card volume is running about 8% above last year. Consumers will likely rack up more than $92 billion in holiday sales on Visa, MasterCard, American Express and Discover credit cards the association said, adding that total holiday retail sales are expected to increase 4.0% this year to $474.5 billion.

The NFR also noted a shift in timing. While there is a major focus on retail shopping data for "Black Friday" (November 23rd) and "Cyber Monday" (November 26th), the peak holiday shopping day will likely be Saturday December 22nd, the association predicted.

Based on historical shopping patterns, the week of Dec. 17-23 will produce the highest level of holiday sales. Furthermore, the holiday shopping period has been expanding as many consumers and retailers shift to the holiday mode shortly after Halloween rather than after Thanksgiving.

Payment card usage from prior years indicates that "Black Friday" and "Cyber Monday" do not even rank among the top five busiest holiday shopping days. The association added that the best times to shop are early mornings and late evenings, especially Monday and Tuesday during the first two weeks of December.