If Octobers sales are any indication, companies are in store for a very happy holiday. According to the National Retail Federation (NRF), retail industry sales for October (which exclude automobiles, gas stations, and restaurants) rose a strong 7.2% unadjusted over last year and increased 1.1% seasonally adjusted from the previous month. September sales were also revised upward, from 7.0% year-over-year growth to 7.2% growth.
“Retailers seem to have found a tantalizing mix of enticing merchandise and tempting promotions, which is encouraging as the holiday season gets underway,” said NRF Chief Economist Rosalind Wells. “If October sales are a sign of the consumers spirits, retailers will be in for a jolly holiday this year.”
October retail sales released today by the U.S. Commerce Department show that total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) dipped 0.1 percent seasonally adjusted from September, largely due to sluggish automobile sales, but increased 5.6 percent unadjusted year-over-year. Gasoline sales, which NRF does not include in its calculation of retail industry sales, rose 26.7% unadjusted from last October.
Nearly every retail industry category saw strong sales last month, including building material and garden equipment and supplies stores, which saw sales rise 2.1% adjusted from September and a whopping 14.1% over last year. Other home categories that experienced growth included furniture and home furnishings stores, whose sales increased 8.5 percent over last year, and electronics and appliances stores, with a 6.5% increase in sales over last October. Additionally, strong year-over-year gains were seen at clothing and accessories stores (7.2%), health and personal care stores (7.3%), general merchandise stores (6.9%), and food and beverage stores (5.2%).
NRF expects retail industry sales to increase 5.6% this year over 2004. Holiday sales, which are defined as retail industry sales in the full months of November and December, are expected to rise 5.0% to $435.3 billion.
