NRF Says December Retail Sales Up Strongly, Beating Expectations

December retail sales in a wide range of categories showed a strong rise despite gloomy sales reports from some retail industry research groups.

According to the National Retail Federation (NRF), December retail sales in the GAFS category (general merchandise stores, clothing and clothing accessories stores, furniture and home furnishings stores, electronics and appliances stores, and sporting goods, hobby, book and music stores) rose a whopping 6.4 percent over the previous year and increased 0.5 percent seasonally adjusted from November.

Combined, November and December brought holiday sales growth to 5.7 percent, the strongest growth since 1999 and higher than last year's 5.1 percent increase. The NRF had been predicting a 4.5 percent GAFS sales increase since September.

"Even after all of the hand-wringing by retail analysts, the holiday season ended on a 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 today (Friday) 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 percent seasonally adjusted from November and increased 9.3 percent unadjusted year-over-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."