Retail sales rose 0.6% in December, topping expectations for holiday shopping (2024)

FAQs

Retail sales rose 0.6% in December, topping expectations for holiday shopping? ›

Retail sales increased 0.6% in December, buoyed by a pickup in clothing and accessory stores as well as online nonstore businesses. Economists expected a rise of 0.4%. Sales ex-autos climbed 0.4%, better than the 0.2% estimate, and the “control group” increased 0.8%.

Spending at US retailers rose 0.6% in December from the prior month, the Commerce Department reported Wednesday. That was a much stronger pace than November's 0.3% gain, and it also beat economists' expectations. Retail sales are adjusted for seasonal swings, but not inflation.

What percentage of annual retail sales do the holidays represent? Overall, holiday sales in November and December have averaged about 19% of total retail sales over the last five years, but the figure can be higher for some retailers.

Retail sales is the sale of consumer goods, or final goods, by businesses to end consumers and includes in-store sales as well as online sales. Products may be durable (with a significant expected shelf life, like washing machines) or perishable (such as groceries).

US Retail Sales YoY measures the year over year percent change in total retail sales within the US economy, excluding food and services, and represents a majority of discretionary consumer spending.

The National Retail Federation, the nation's largest retail trade group, said Wednesday that holiday sales rose 3.8% for the November and December period compared to the same year-ago period. That was in line with its forecast for 3% to 4% growth.

Wholesale prices fell 0.5% in December, much more than expected; retail sales fall. The producer price index declined 0.5% for the month, compared to the Dow Jones estimate for a 0.1% decrease. A sharp drop in energy prices helped bring the headline inflation reading down for the month.

Job creation is another positive effect of Christmas on the economy. Due to increased demand and footfall, employment is provided for many individuals during Christmas, often at a higher pay rate. These are often jobs in retail, logistics and hospitality, and many people rely on this for their yearly income.

Half (50 percent) of all small businesses get more than 25 percent of their annual sales in the holiday season. 75 percent of retail SMBs say they rely heavily on holiday customers, and 73 percent attribute more than one quarter of their annual sales to the holiday period.

Returns have a significant impact on retail businesses, having cost an estimated $816 billion in revenue in 2022, according to the National Retail Federation. With more consumers having made or expecting to make gift returns, the 2023 holiday season could have an even bigger annual impact than normal.

How is retail sales calculated? ›

It is based on Census Bureau data estimating all retail spending but omits certain volatile categories of spending that can skew the number. Core retail sales represents retail sales excluding spending on automobiles, gasoline, building materials, and food services.

Examples of retail sales include clothing purchases, furniture buys, and meals purchases from food services businesses.

Retail means to sell goods to the public, typically in small quantities, for consumption. Selling is the exchange of goods or services for money. Although there are numerous sales completed online, there is still a need for physical locations. This opens the opportunity for jobs in sales.

Retail Sales in the United States increased 3% year-on-year in April 2024, following a downwardly revised 3.8% gain in March. Retail Sales YoY in the United States averaged 4.78 percent from 1993 until 2024, reaching an all time high of 52.50 percent in April of 2021 and a record low of -19.90 percent in April of 2020.

Retail sales is an important indicator that signals either the contraction or expansion of an economy. An increase in retail sales signals a healthy economy that is expanding while a decrease in retail sales signals the opposite. An increase in retail sales usually moves stocks upward and is good for shareholders.

While November and December, with events like Black Friday and Cyber Monday, are peak months for online sales, the summer months and post-holiday season in January and February are typically the slowest. However, with the right strategies, retailers can turn these slow months into opportunities.

NRF Says Census Data Shows 2023 Holiday Sales Grew 3.8% to Record $964.4 Billion.

In general, you'll find the biggest discounts in the week between Christmas and New Year's, when retailers are trying to move inventory that didn't sell for the holidays — and tempt buyers coming in with returns or gift cards to pick up something extra.

Retail sales continued to fall in December as shoppers battled inflation. It was a ho-hum end to 2022 for spending in America. US retail sales continued their fall in December, dropping by 1.1% as inflation remained high, the Commerce Department reported Wednesday.