According to the National Retail Federation, retail industry sales (which exclude automobiles, gas stations, and restaurants) for December rose 5.3% unadjusted year-over-year and 0.5% seasonally adjusted from November.
As a result, preliminary 2010 holiday sales, which combine the full months of November and December, rose 5.7% to $462 billion, surpassing NRF's forecast of 3.3%. This represents the best holiday sales gain since 2004 when holiday sales increased 5.9%.
“In spite of weakness in employment and rising gas prices, consumers showed they still have spending power which helped retailers when it counted most,” said NRF President and CEO Matthew Shay. “Retailers did a tremendous job planning for the season by managing inventory and hitting the right price points that helped them tap into pent up demand.”
“While the worst appears to be behind us, we are not out of the woods yet,” said NRF Chief Economist Jack Kleinhenz. “This latest step-up in growth is a spark for increased business spending and hiring.”
December retail sales released today by the U.S. Commerce Department show total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) increased 0.6% seasonally adjusted over November and 8.3% unadjusted year-over-year.
Sales growth from November varied in strength while year-over-year sales showed great strength. Sales at clothing and clothing accessory stores decreased 0.2% seasonally adjusted over last month but increased a solid 8.4% unadjusted year-over-year. Sporting goods, hobby, book and music stores sales increased 0.4% seasonally adjusted month-to-month and 8.2% unadjusted year-over-year.
Though the US is still dealing with a weak housing environment, building material and garden equipment stores sales showed notable gains, increasing 1.9 seasonally adjusted over last month and a strong year-over-year growth of 12.0%.
Electronics and appliance stores sales decreased 0.6% seasonally adjusted over November but increased 1.4% unadjusted year-over-year. Sales at health and personal care stores 1.6% seasonally adjusted month-to-month and 7.2% unadjusted over December 2009.
Meanwhile, the U.S. Census Bureau announced that advance estimates of U.S. retail and food services sales for December – adjusted for seasonal variation and holiday and trading-day differences, but not for price changes – were $380.9 billion, an increase of 0.6% from the previous month, and 7.9% above December 2009. It marked the sixth consecutive monthly gain although Decemberâ€s increase was slightly below private-sector expectations of a 0.8% gain.
Total sales for the 12 months of 2010 were up 6.6% from 2009. Total sales for the October through December 2010 period were up 7.8% from the same period a year ago. The October to November 2010 percentage change was unrevised from +0.8%.
Retail trade sales were up 0.7% from November 2010, and 8.2% above last year. Nonstore retailers sales were up 15.0% from December 2009 and auto and other motor vehicle dealers sales were up 14.7% from last year.
Excluding automobiles, retail sales grew 0.5% in December and a strong 5.9% for the full year of 2010. Sales at motor vehicle dealers increased 1.1%.
Sporting goods, hobby, book & music stores on an adjusted basis grew 7.1% in December to $7.58 billion from $7.08 billion.
“As we reflect on the past year, today's data underscore that retail sales � a fundamental indicator of economic health � grew at a strong pace throughout the second half of 2010, signaling momentum in consumer spending and the overall economy,” U.S. Commerce Secretary Gary Locke said. “Our mission in 2011 is accelerated hiring for the American people and accelerated growth for the U.S. economy, and we will continue to fight for every job, every business and every opportunity to achieve this mission.”
