Holiday Sales Decline 2.8% in 2008, NRF

Retail industry sales for December (which exclude automobiles, gas stations and restaurants) declined 2.2 percent unadjusted over last year and decreased 1.4 percent seasonally adjusted from November, according to the National Retail Federation.

The reasons for the poor sales are by now - a deep recession, severe winter weather and five fewer shopping days combined to create the most challenging sales environment in years for the nation’s retailers.

With November sales revised down to a 3.4 percent decline unadjusted year-over-year from the original reported 2.2 percent, initial 2008 holiday sales declined 2.8 percent to $447.5 billion, weaker than NRF’s projected 2.2 percent holiday forecast.

“The current economic crisis proved to be more challenging than any had anticipated,” said NRF Chief Economist Rosalind Wells. “Consumers showed they were more than willing to wait out retailers this year causing increased pressure on prices.”

December retail sales released today by the U.S. Commerce Department show total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) decreased 2.7 percent seasonally adjusted from last month and dropped 7.9 percent unadjusted year-over-year. 

Among the few seasonal bright spots in December were health and personal care stores, where unadjusted sales grew a solid 7.6 percent year-over-year and 0.4 percent seasonally adjusted from November. Sporting goods, hobby, book and music stores were up 0.7 percent unadjusted from a year ago and down 0.4 percent from seasonally adjusted month-to-month.