U.S. Census Bureau data released on January 17 shows that overall December retail sales, including autos, gas and restaurants, were up 0.6 percent from November and up 5.6 percent year-over-year (YoY).
In November, the U.S. Census Bureau numbers were up 0.3 percent month-over-month (MoM) and up 4.0 percent YoY.
Core retail sales during the 2023 holiday period, November and December combined, reportedly grew 3.8 percent versus the corresponding period in 2022, supported by continued inflation and despite high interest rates.
Core inflation, which excludes the food and energy sector, was expected to rise 3.8 percent YoY in December, following a 4.0 percent increase in November; however, core prices climbed 0.3 percent MoM in December at the same rate as November’s increase, making the YoY increase total 3.9 percent.
The $964.4 billion record sales in the 2023 holiday period topped the previous record of $929.5 billion in the 2022 Holiday season.
December retail sales, defined by The National Retail Federation (NRF), which excludes restaurants, autos and gas, were up 0.7 percent MoM seasonally adjusted from November and up 3.3 percent unadjusted YoY. By comparison, November sales were up 0.4 percent MoM from October and up 4.2 percent YoY versus November 2022.
As previously reported, the NRF reported total retail sales, excluding autos and gas, were up 3.1 percent unadjusted year-over-year (YoY) in December, according to the CNBC/NRF Retail Monitor. The Monitor calculation of core retail sales, excluding restaurants, autos and gas, showed an increase of 2.4 percent YoY in December, compared with a gain of 4.17 percent YoY in November.
Despite a slower growth rate compared with the past three years, when trillions of dollars of stimulus led to unprecedented rates of retail spending during the pandemic, 2023 holiday spending was consistent with the average annual holiday increase of 3.6 percent from 2010 to 2019.
“Consumer spending was remarkably resilient throughout 2023 and finished the year with a solid pace for the Holiday season,” said NRF Chief Economist Jack Kleinhenz. “Although inflation has been the biggest concern for households, the price of goods eased notably and was helped by a healthy labor market, underscoring a successful holiday season for retailers.”
The U.S. Census Bureau said sales for the full year grew 3.6 percent over 2022 to a record $5.13 trillion.
The NRF reported that total retail sales for the full calendar year 2023 were up 5.3 percent over 2022, as calculated by the CNBC/NRF Retail Monitor, and core retail sales were up 4.5 percent.
The NRF had forecasted that 2023 holiday sales would increase between 3 percent and 4 percent over 2022 to between $957.3 billion and $966.6 billion. The holiday total, not adjusted for inflation, includes online and other non-store sales, which were up 8.2 percent YoY to $276.8 billion. The NRF had forecasted that the category would grow between 7 percent and 9 percent to between $273.7 billion and $278.8 billion. Online holiday sales were $255.8 billion in 2022.
The NRF said the $5.13 trillion full-year total was in line with its most recent expectation that 2023 annual retail sales would increase about or just below 4 percent over 2022, reflecting a slowdown in the growth rate through the year. Full-year sales during 2022 totaled $4.95 trillion, the previous full-year spending record.
The U.S. Census Bureau’s November/December Holiday sales calculation saw year-over-year gains in all but two of nine retail categories, led by electronics and appliance stores, health and personal care stores and online sales.
Specifics from key sectors for the two months combined, on an unadjusted year-over-year basis, include:
- Sporting Goods stores were up 0.3 percent.
- Clothing and Clothing Accessory stores were up 3 percent.
- Electronics and Appliance stores were up 9.3 percent.
- General Merchandise stores were up 2 percent.
- Online and other Non-Store sales were up 8.2 percent.
- Health and Personal Care stores were up 9 percent.
- Grocery and Beverage stores were up 1.1 percent.
- Building Materials and Garden Supply stores were down 3.9 percent.
- Furniture and Home Furnishings stores were down 6.2 percent.
NRF’s Holiday Jobs Forecast Was on Target
While Holiday hiring for some retailers was lower than in years past, the NRF estimated that holiday jobs totaled 439,500 for November and December. The organization expected retailers to hire between 345,000 and 450,000 seasonal workers, in line with 391,000 seasonal hires in 2022.
For additional SGB Media coverage of the 2023 holiday season go here and click on the SGB articles below.
Report: Two-Month Holiday Selling Season Sales Rose 3.07 Percent
Report: Over 17 Percent of Global Holiday Online Sales Influenced by AI in 2023
Report: U.S. Holiday Season Retail Sales at Low End of Forecast
