NRF: Holiday sales up 3 percent in 2007
January 15, 2008
New York—The 2007 holiday selling season, which combines both November and December sales, increased 3 percent to $469.9 billion, weaker than the National Retail Federation’s (NRF) projected 4 percent holiday forecast, the association announced today.
This represents the lowest holiday season growth rate since 2002, when sales rose 1.3 percent.
December retail sales released today by the U.S. Commerce Department (excluding automobiles, gas stations and restaurants) increased just 1.7 percent unadjusted over last year and decreased 0.4 percent seasonally adjusted from November.
Total retail sales for the month (including non-general-merchandise categories such as automobiles, gas stations and restaurants) increased 3.2 percent unadjusted over last year and dipped 0.4 percent seasonally adjusted from last month.
In addition, November retail sales were revised downward to a 4.7 percent growth rate from the initial 5.1 percent that was reported last month.
“Economic pressures caused deterioration in the sales climate at the end of the year,” NRF Chief Economist Rosalind Wells said in a statement. “Because holiday sales were disappointing, retailers will have to quickly adapt with pricing strategies and promotions that will encourage consumers to spend.”
Health and personal-care stores posted the strongest gains in December, with sales increasing 3.7 percent unadjusted over last year and 0.7 percent seasonally adjusted from November. General-merchandise stores also saw small gains, with sales increasing 2.1 percent year-over-year and 0.3 percent from the previous month.
Clothing and clothing accessories stores, department stores, furniture stores and home furnishings stores fared the worst.
The NRF is forecasting that retail sales will increase 3.5 percent in 2008.
The NRF is the largest retail trade association in the world, with members including department, discount, drug, grocery, independent and specialty stores, catalog merchants, chain restaurants and e-tailers, as well as the industry’s key trading partners of retail goods and services.
For more information about the NRF, visit its Web site, NRF.com.