Holiday shoppers are off to a solid but unspectacular start as retail sales registered a modest gain in November.
The Commerce Department announced today retail sales rose a seasonally adjusted 0.2% to $448 billion last month, The Associated Press reports. This marks an improvement after months of lackluster spending as cheaper gasoline depressed overall sales volumes. Retail spending improved a mere 0.1% in October after a 0.1% drop in September.
But in November, shoppers upped their spending at clothiers, sporting goods stores and electronics outlets. Spending at online retailers such as Amazon advanced a healthy 0.6%. General merchandise stores also improved, but in a bleak sign for chains such as Macy’s, sales at department stores were flat.
“Despite a weak-ish headline, retail spending in November suggests a firm pace of consumption,” says Bricklin Dwyer, a senior economist at the bank BNP Paribas.
The report should provide some relief after evidence of tepid shopping during Black Friday—the day after Thanksgiving when consumers often splurge—and give a better sense about the level of confidence in the broader economy. Initial figures indicated that many consumers stayed at home, potentially choosing to browse for holiday gifts online instead of wading through crowds at stores.
The National Retail Federation estimated that spending averaged $299.60 per person over Thanksgiving weekend. That was down from $381 last year. But the trade association says the figures are not comparable due to methodology changes.
But the retail sales report confirms that consumers are shifting away from malls and shopping plazas. Online sales advanced 7.3% from a year ago. People are also more eager to eat out, with expenditures at restaurants increasing 0.7% in November and 6.5% over the past 12 months. Americans have stepped up their purchases of cars this year, although sales at auto dealers slipped 0.6% last month.
Tom McGee, president and CEO of International Council of Shopping Centers, the mall trade group, says he’s sticking to a 3.3% sales growth for the November and December period.
“I think this is a strong holiday season,” he says. “But clearly changes are taking place that are beginning to take hold.”
The Associated Press has the full story.
