According to the National Retail Federation, a U.S. Commerce Department report of December retail sales in the GAFS category, which includes most general merchandise categories, jumped 6.4% over the previous year and increased 0.5% seasonally adjusted from November.
Combined, November and December brought holiday sales growth to 5.7%, the strongest growth since 1999 and higher than last year’s 5.1% increase. NRF had been predicting a 4.5% GAFS sales increase since September.
“Even after all of the hand-wringing by retail analysts, the holiday season ended on strong footing,” said NRF Chief Economist Rosalind Wells. “Post-holiday discounting and gift-card redemptions helped provide a last-minute surge in spending.”
December retail sales released Thursday by the U.S. Commerce Department show that total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) rose 1.2% seasonally adjusted from November and increased 9.3% unadjusted year-over-year.
Several retail sectors in December saw strong growth. Furniture and home furnishings stores saw positive gains, with sales up 2.2% seasonally adjusted from November and rising 7.2% over 2003. Additionally, general merchandise stores, which include department stores, grew 0.7% from the prior month and 7.8% over the previous year. Sales at sporting goods stores rose 0.9% over November and a strong 4.2% over 2003. Clothing and clothing accessories stores dropped 0.6% over November but rose an impressive 5.0% over the previous year.
“Though we were projecting a solid holiday season, the final outcome was better than we thought it would be,” said NRF President and CEO Tracy Mullin. “The 2004 holiday season should serve as a reminder that retail analysts should never underestimate the power of the consumer.”
